STAND. COM. REP. NO. 2658

Honolulu, Hawaii

RE:    S.B. No. 2841

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2841 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to facilitate a public employer's payment of contributions to the Employees' Retirement System.

     Specifically, the measure:

(1)  Authorizes the State and the counties to make advance payments to the system in lieu of monthly payments;

(2)  Provides that the Employees' Retirement System's determination of the actual amounts owed by the State and counties for a fiscal quarter take into account any excess contributions, as well as amounts paid, in the previous quarter; and

(3)  Requires that these payment procedures commence on July 1, 2016.

     Your Committee received written comments in support of this measure from the Employees' Retirement System.

     Your Committee finds that this measure clarifies that public employers may make contributions to the system in advance and are therefore not required to make the otherwise required monthly payments if the previous advance payments are sufficient to cover the required contributions for the month.  Your Committee further finds that this measure also clarifies the manner in which quarterly reconciliations will be made.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2841 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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JILL N. TOKUDA, Chair