STAND. COM. REP. NO.  160-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2312

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2312 entitled:

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

begs leave to report as follows:

The purpose of this measure is to enable the Employees' Retirement System (ERS) to invest funds sooner, thereby increasing the potential for greater investment returns and reducing its unfunded liability, by facilitating advance payment of State and county contributions to the ERS.

While the State and counties are not prohibited from making advance contributions to the ERS, the law still requires monthly payments, even if an employer has paid most of the fiscal year's contributions in advance.  This measure confirms that the State and counties may make advance contributions and provides that monthly payments are not required if previous advance payments were sufficient to cover the required contributions for the month.

The ERS and the Department of Budget and Finance testified in support of this measure.

     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. 2312 and recommends that it pass Second Reading and be referred to your Committee on Finance.

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

____________________________

MARK M. NAKASHIMA, Chair