STAND. COM. REP. NO. 2664

Honolulu, Hawaii

RE:    S.B. No. 2749

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2749, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to correct, clarify, and harmonize the changes made by Act 163, Session Laws of Hawaii 2011, to reduce the unfunded liability of the Employees' Retirement System.

     Specifically, the measure:

     (1)  Deletes water safety officers from the list of individuals who join the Employees' Retirement System as contributory members after June 30, 2012;

     (2)  Corrects various typographical and nonsubstantive errors in the State's pension and retirement system law, Chapter 88, Hawaii Revised Statutes; and

     (3)  Harmonizes service retirement, ordinary disability retirement, and ordinary death benefits for individuals who become members of the Employees' Retirement System after June 30, 2012.

     Written comments in support of this measure were submitted by the Department of Budget and Finance and the Employees' Retirement System.

     Your Committee finds that Act 163, Session Laws of Hawaii 2011, was enacted to make various revisions to the Employees' Retirement System in order to reduce the System's unfunded liability.  Your Committee also finds that the amendments made by this measure to Chapter 88, Hawaii Revised Statutes, will clarify benefit changes made under Act 163.

     Your Committee has amended this measure by making a technical nonsubstantive amendment for the purposes of conformity with recommended drafting conventions.

     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. 2749, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2749, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair