STAND. COM. REP. NO.  1200-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2039

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred S.B. No. 2039, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to assist Hawaii's public employee retirees and help offset the effects of inflation on older retirees' pensions by providing a one-time, lump sum pension bonus payment available only to retirees who are at least 75 years of age and who have been in retirement for at least 20 years.

     The Hawaii Government Employees Association, Hawaii State Teachers Association, Hawaii State Teachers Association-Retired, and several concerned individuals testified in support of this bill.  The Department of Budget and Finance testified in opposition to this measure.  The Board of Trustees of the Employees' Retirement System provided comments.

     Retirees often face financial challenges because they live on a fixed income.  Rising costs of living, compounded by inflation, have made it difficult for retirees to meet their daily needs.  This is especially true for those employees who have been retired for over 20 years because their retirement benefits are based upon earnings that are now 20 years old.  This one-time, lump sum pension bonus payment will provide retirees with some needed relief from living expenses.

     Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 S.B. No. 2039, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2039, S.D. 1, H.D. 1, 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