STAND. COM. REP. NO. 1085

Honolulu, Hawaii

RE:    H.B. No. 814

       H.D. 1

       S.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. 814, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to reduce the expenses of the State and the counties for the group life insurance benefits of retired and active public employees.

     Specifically, this measure:

(1)  Limits group life insurance benefits to only retired employees who retired before July 1, 2011;

(2)  Eliminates annual adjustments of the monthly contributions for the group life insurance benefits of retirees; and

(3)  Eliminates the negotiability of group life insurance contributions for active employees.

     Your Committee received comments in support of 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 received comments in opposition to this measure from Randy Perreira, Executive Director, Hawaii Government Employees Association.

     Your Committee received comments on this measure from Kalbert K. Young, Director, Department of Budget and Finance.

     Your Committee finds that the long-term cost saving initiative proposed in this measure will help to alleviate the significant benefits liabilities faced by the State and the counties.

     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. 814, H.D. 1, S.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