STAND. COM. REP. NO.  612-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2538

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2538 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to switch the payments of Employees' Retirement System (ERS) benefits from a semi-monthly basis by paper check through the mail, to a monthly basis by direct deposit, to save in postage, printing, and bank fees.

     ERS testified in support of this bill.  United Public Workers AFSCME, Local 646, AFL-CIO; and State of Hawaii Organization of Police Officers opposed this measure.  The Hawaii Government Employees' Association provided comments.

     Your Committee notes that ERS would be responsible for notifying retirants of the change in a timely and appropriate manner.

     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. 2538 and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair