STAND. COM. REP. NO.  898-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2263

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2263, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to improve the funded status of the Employees' Retirement System (ERS) and reduce public employer contributions by changing the formula used to credit unused sick leave toward retirement benefits for public employees who become members of the ERS after June 30, 2014.

The ERS and the Department of Budget and Finance supported this measure.  The University of Hawaii Professional Assembly, Hawaii Government Employees Association, Hawaii Fire Fighters Association, and United Public Workers, AFSCME, Local 646, AFL-CIO opposed this measure.

Your Committee has amended this bill by:

(1)  Changing its effective date to July 1, 2030, to facilitate continued discussion; and

(2)  Making technical, nonsubstantive amendments for clarity.

     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. 2263, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2263, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair