STAND. COM. REP. NO. 678

Honolulu, Hawaii

RE:    S.B. No. 1950

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1950, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE RE-EMPLOYMENT OF RETIREES,"

begs leave to report as follows:

     The purpose of this measure is to ensure that the state and county governments are able to maintain a qualified, stable, and experienced workforce in the face of unprecedented low unemployment and an aging workforce.

     Specifically, this measure authorizes the rehiring of state or county employees who have been retired for at least five consecutive calendar years without affecting the receipt of their retirement benefits and without accruing additional credit or benefits.

     Your Committee received testimony in support of this measure from the Judiciary, the HGEA/AFSCME, State of Hawaii Organization of Police Officers, Honolulu Police Department, the Mayor and the Director of Human Resources of the County of Hawaii, and the Chairperson of the Maui County Council.

     Your Committee finds that it is crucial for the state and county governments to continue to operate with a qualified and stable workforce.  This measure will help to achieve that while contributing to further funding the Employees' Retirement System's unfunded liability.

     Upon further consideration, your Committee has amended this measure by:

(1)  Changing the period that a retired employee must wait to return to government employment from at least five consecutive calendar years to an unspecified number of years;

(2)  Changing the effective date to July 1, 2040, for the purpose of facilitating further discussion; and

(3)  Making technical nonsubstantive amendments for purposes of clarity and consistency.

     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. 1950, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1950, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair