STAND. COM. REP. NO.  889-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2606

      H.D. 2

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. 2606, 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 establish a temporary retirement benefit incentive for public employees who are working in Maui Regional System Facilities, are otherwise eligible to retire, and whose positions are subject to layoff due to the consolidation or abolition of functions, or the privatization of the functions of the position as a result of Act 103, Session Laws of Hawaii 2015.

The United Public Workers, AFSCME, Local 646, AFL-CIO; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and many individuals provided testimony in support of the measure.  The Department of Budget and Finance provided testimony in opposition.  The Employees' Retirement System and an individual provided comments.

     Your Committee has amended this measure by changing the effective date to July 1, 2030, to encourage further discussion.

     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. 2606, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2606, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair