Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 916 entitled:

begs leave to report as follows:

The purpose of this measure is to allow trustees of the Office of Hawaiian Affairs who were in service on July 1, 2002, with no fewer than five years of employees' retirement system membership service, and who elected to become employees' retirement system members prior to October 1, 2002, to purchase their service credit pursuant to section 88-59, Hawaii Revised Statutes.

Your Committee finds that Act 183, Session Laws of Hawaii 2002, authorized Office of Hawaiian Affairs trustees to become members of the employees' retirement system. However, the law did not address whether trustees would be able to obtain credit for service rendered during the period between July 1, 1993, and July 1, 2002. As a result, trustees who could claim prior service credit after having served the requisite number of years, who were eligible for retirement, and who did not wish to seek an additional term in office were unable to acquire full credit for past service. This measure will ensure consistency in the retirement benefits extended to Office of Hawaiian Affairs trustees.

Your Committee has amended this measure by making technical nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 916, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 916, S.D. 1.