STAND. COM. REP. NO. 2414

Honolulu, Hawaii

RE:    S.B. No. 2039

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2039 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to provide a one-time, lump sum pension bonus for older retirees.

     More specifically, the bill provides state and county retirees who are seventy-five years of age and older and have been in retirement for at least twenty years as of June 30, 2008, a lump sum derived by adding up $1 for every month of every year of credited service. 

     Testimony in support of this bill was received from the Hawaii Government Employees Association, the Hawaii State Teachers Association, and the Hawaii State Teachers Association – Retired.  Testimony opposing the bill was received from the Department of Budget and Finance.

     Your Committee recognizes that today's high cost of living presents a challenge for many of our older retirees.  This bill would provide some financial relief to and enhance the purchasing power of retirees whose pension is computed from a smaller base as compared with more recent retirees. 

     Your Committee has amended this measure to make technical nonsubstantive amendments for the purpose of clarity, style and consistency.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2039, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2039, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

BRIAN T. TANIGUCHI, Chair