Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Higher Education and Labor, to which was referred H.B. No. 5, H.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to make the optional retirement plan for University of Hawaii employees permanent.

Your Committees received testimony in support of this measure from the University of Hawaii, University of Hawaii Professional Assembly, Teachers Insurance and Annuity Association College Retirement Equities Fund, and AIG VALIC. The Hawaii Government Employees Association supported the intent of this measure.

Your Committees find that Act 180, Session Laws of Hawaii 2004, was passed with a sunset provision of five years. This five-year sunset provision prohibits the implementation of an optional retirement plan because anyone choosing this plan would have no plan once the optional retirement plan is repealed.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Higher Education and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 5, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 5, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.