STAND. COM. REP. NO. 1083

Honolulu, Hawaii

RE:    H.B. No. 1035

       H.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, 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 and intent of this measure is to place a moratorium on benefit enhancements under the Employees' Retirement System until the system is fully funded.

     Your Committee received comments in support of this measure from Kalbert K. Young, Director, Department of Budget and Finance; and Kris Coffield, Legislative Director, IMUAlliance.  Your Committee received comments on this measure from Michael Hansen, Department of Budget and Fiscal Services, and Noel Ono, Department of Human Resources, City and County of Honolulu.

     Your Committee finds that stability in the level of benefits received by current and former public employees will help the Employees' Retirement System to eventually eliminate its unfunded liability and ensure the long-term viability of the system.

     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 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 Ways and Means,

____________________________

DAVID Y. IGE, Chair