STAND. COM. REP. NO.  850-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2006

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2006 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 classify judges who begin service or who are reappointed or promoted on or after July 1, 2016, as hybrid members of the Employees' Retirement System subject to a two percent benefit multiplier and retirement age of sixty.

The Judiciary and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO opposed this measure.  The Employees' Retirement System provided comments.  

     Your Committee has amended this measure by:

     (1)  Adopting the amendments proposed by the Employees' Retirement System that specifically:

          (A)  Remove language reclassifying judges as class H, hybrid, members; and

          (B)  Insert new language which preserves judges' classification as class A members and applies the two percent benefit multiplier and sixty year retirement age to service credit earned by judges who entered service or were reappointed or promoted on or after July 1, 2016; and

     (2)  Making technical nonsubstantive amendments for clarity, consistency, and style.

     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. 2006, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2006, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair