CONFERENCE COMMITTEE REP. NO. 28-10

Honolulu, Hawaii

                 , 2010

RE:    H.B. No. 2919

       H.D. 1

       S.D. 2

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2919, H.D. 1, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this bill is to provide equity in benefits to people doing similar work by expanding the definition of "sewer worker" to include sewer maintenance working supervisors, wastewater collection system inspection supervisors, wastewater collection system district supervisors, and wastewater collection system field services supervisors.

     Your Committee on Conference recognizes the concerns presented by the Employees' Retirement System (ERS) regarding expanding the definition of "sewer worker" under section 88-21, Hawaii Revised Statutes, as it will enable a greater number of employees to take early retirement without reduction for age as long as the member has at least 25 years of service.  ERS also indicated that this action will increase the ERS' $6.2 billion unfunded actuarial accrued liability, and it is contrary to the moratorium on benefit enhancements set in place by Act 256, Session Laws of Hawaii 2007.  However, your Committee on Conference finds that this bill would have a minimal impact as, according to the City and County of Honolulu's Department of Human Resources, there are only seven employees who would receive this benefit enhancement should this bill become law and that it is fair and appropriate to provide similarly situated employees who perform substantially similar duties with comparable benefits under the ERS.

     After further consideration, your Committee on Conference has amended this bill by changing its effective date from January 3, 2055, to July 1, 2011.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2919, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2919, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DWIGHT Y. TAKAMINE, Chair	____________________________ KARL RHOADS, Co-Chair
____________________________ SHAN S. TSUTSUI, Co-Chair	____________________________ KYLE T. YAMASHITA, Co-Chair