Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Labor and Judiciary and Hawaiian Affairs, to which was referred S.B. No. 916 entitled:

beg 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 fewer than five years of employees' retirement system (ERS) membership service, and who elected to become ERS members prior to October 1, 2002, to purchase their service credit pursuant to section 88-59, Hawaii Revised Statutes.

Testimony in support of this measure was submitted by the Office of Hawaiian Affairs.

Your Committees find that pursuant to Act 183, Session Laws of Hawaii 2002 (SLH 2002), the OHA trustees were authorized to become members of the ERS; however, the law did not contemplate the manner in which 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, were eligible for retirement, and did not wish to seek an additional term in office would be unable to acquire full credit for past service. Your Committees determine that this measure is necessary in order to cure an unintended inequity created by Act 183, SLH 2002, thereby rectifying an oversight in legislation wherein it was intended that the same retirement benefits afforded to other elected salaried officials would be extended to OHA trustees. Thus, this measure will ensure consistency in the retirement benefits extended to OHA trustees.

As affirmed by the records of votes of the members of your Committees on Labor and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 916 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.