STAND. COM. REP. NO.  1696

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 936

      S.D. 2

      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 Finance, to which was referred S.B. No. 936, S.D. 2, 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 update statutes relating to the Employees' Retirement System (ERS).

     Specifically, this measure:

     (1)  Extends the benefit finalization period for December 31 retirements;

     (2)  Changes the interest rate applicable to late benefit finalizations;

     (3)  Extends the deadline for employer payments relating to significant non-base pay increases for certain employees;

     (4)  Allows an entity designated by the ERS Board of Trustees to certify a member's mental or physical incapacity for purposes of determining the member's eligibility for an ordinary disability retirement allowance, service-connected disability benefits, or accidental death benefits; and

     (5)  Incrementally increases the rates for employer contributions to the Employees' Retirement System.

The Department of Budget and Finance, Employees' Retirement System, and Finance Department of the County of Hawaii supported this measure.

     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 S.B. No. 936, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair