STAND. COM. REP. NO. 2452

Honolulu, Hawaii

RE:    S.B. No. 2691

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2691, S.D. 1, 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 measure is to require that, beginning March 1, 2011, all retirees and beneficiaries of the state Employees' Retirement System be paid by direct deposit.

     Your Committee received written comments in support of this measure from the State of Hawaii Employees' Retirement System.  Comments in opposition to the measure were received from the Hawaii Government Employees Association.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that requiring direct deposit for payment of benefits for retirees and beneficiaries will streamline the processing of payments and will provide cost savings to the State in the form of reduced postage, check printing and imaging costs, and bank fees.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2691, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONNA MERCADO KIM, Chair