STAND. COM. REP. NO.  1009-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2710

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2710, H.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 bill is to assist the state and county governments in meeting their workforce needs by allowing the state and county governments to hire retired state or county government employees if the employer abides by certain conditions, including hiring only after an employee has been retired for one calendar year.

     The Department of Human Resources Development, Department of Education, Judiciary, County of Hawaii, Department of Human Resources of the County of Hawaii, Department of Personnel Services of the County of Maui, Honolulu Fire Department, Hawaii Council of Mayors, Hawaii State Teachers Association, and Hawaii Government Employees Association testified in support of this bill.  The Employees' Retirement System (ERS) and Department of Personnel Services of the County of Kauai offered comments.

     Your Committee has amended this bill by:

     (1)  Clarifying that the requirement that retired state or county government employees be eligible for rehiring only after one calendar year of retirement applies to positions of at least one-half of a full-time equivalent;

     (2)  Specifying that each employer shall contribute to the pension accumulation fund the required percentage of the rehired employee's compensation to amortize ERS' unfunded actuarial accrued liability; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2710, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2710, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair