STAND. COM. REP. NO.  1058-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2244

      S.D. 1

      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 Labor & Public Employment, to which was referred S.B. No. 2244, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RETIREMENT,"

begs leave to report as follows:

The purpose of this measure is to bring the retirement benefits of prospective judges in line with the retirement benefits of other public employees who are members of the Employees' Retirement System.  Specifically, this measure:

     (1)  Provides that a member of the Employees' Retirement System who first earned credited service as a judge after June 30, 2016, and has at least 12 years of credited service and attained age 60, or has at least 25 years of credited service and has attained age 55, may retire with retirement allowance; and

     (2)  Reduces the retirement allowance for a member who first earns credited service as a judge after June 30, 2016, to two percent of the member's average final compensation.  If the member has not attained age 60 the retirement allowance will be reduced for each month the member's age at the date of retirement is below age 60.

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

     Your Committee has amended this measure by:

     (1)  Replacing its contents with H.B. No. 2006, H.D. 1, a similar bill that was passed by your Committee, which preserves judges' classification as class A members and applies the two percent benefit multiplier and 60 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 Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2244, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2244, S.D. 1, H.D. 1, and be referred to your Committee on Judiciary.

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

____________________________

MARK M. NAKASHIMA, Chair