STAND. COM. REP. NO.  643

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1366

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1366 entitled:

"A BILL FOR AN ACT RELATING TO SEPARATION INCENTIVES,"

begs leave to report as follows:

     The purpose of this bill is to clarify the special separation incentive benefit afforded to public employees by:

     (1)  Clarifying that the Department of Human Resources              Development's(DHRD) authority to provide separation            incentives is limited to the various departments and               agencies of the Executive Branch, excluding the                    Department of Education;

     (2)  Clarifying that DHRD's authority does not extend to            departments and agencies in other personnel                        jurisdictions;

     (3)  Clarifying that separation incentive provisions are            applicable to and shall be complied with by other              jurisdictions, whenever they opt to participate and use       special retirement incentives;

     (4)  Including Class H members of the Employees' Retirement         System (ERS) among the members qualified for the special      incentive retirement benefit;

     (5)  Lengthening the time period to notify the ERS from 90 to      150 days prior to an employee's retirement date; and

     (6)  Extending the special retirement incentive benefit for        an additional five years to 2013.

     DHRD testified in support of this measure.  ERS submitted comments.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1366 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair