STAND. COM. REP. NO.  414

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 1063

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1063 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 preserve the Employees' Retirement System's use and control of unclaimed member contributions and benefit payments that would otherwise be paid to the State's Unclaimed Property Program or escheated to other states.

The Employees' Retirement System testified in support of this measure.

     Your Committee finds that unclaimed member benefits range from $500,000 to $1,000,000 yearly.  Your Committee further finds that this measure preserves the member, former member, beneficiary, or other person or entity's ability to recover the forfeited contributions or benefit payments by submitting a valid request for repayment.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2050, to facilitate further discussion; 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 H.B. No. 1063, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1063, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

AARON LING JOHANSON, Chair