STAND. COM. REP. NO.  361

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1142

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1142 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to establish the retirement age for state and county employees who become members of the Employees' Retirement System (ERS) after June 30, 2012.

     Your Committee recognizes that increasing health care costs, rising public employer pension contributions, and mounting budget pressures to contain costs threaten the soundness of ERS benefits to employees.  It is your Committee's intent to contemplate various options to facilitate further discussion to meet the financial costs of pension coverage and sustain public employee benefits over the long term.

     The ERS and ERS Board of Trustees testified in support of this measure.  The City and County of Honolulu Department of Budget & Fiscal Services submitted comments.  The Maui Police Department opposed the bill.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1142 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

KARL RHOADS, Chair