STAND. COM. REP. NO.  773

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1035

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1035, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYEES' RETIREMENT SYSTEM BENEFIT ENHANCEMENT MORATORIUM,"

begs leave to report as follows:

     The purpose of this bill is to assist the Employees' Retirement System (ERS) in improving and protecting its funded status by placing a moratorium on the enhancement of ERS benefits until the system's funded ratio is one hundred per cent.

     The Department of Budget and Finance, the Employees' Retirement System, and the Imua Alliance supported this bill.  Several concerned individuals opposed this bill.  A concerned individual offered comments.

     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. 1035, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair