STAND. COM. REP. NO.  132

 

Honolulu, Hawaii

                , 2025

 

RE:   H.B. No. 1183

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

 

Madame:

 

     Your Committee on Labor, to which was referred H.B. No. 1183 entitled:

 

"A BILL FOR AN ACT RELATING TO ALLOWANCE ON SERVICE RETIREMENTS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to include certain law enforcement administrators and employees of the Department of Law Enforcement as Class A members in the Employees' Retirement System.

 

     Your Committee received testimony in support of this measure from the Department of Law Enforcement.  Your Committee received testimony in opposition to this measure from the Department of Budget and Finance.  Your Committee received comments on this measure from the Employees’ Retirement System.

 

     Your Committee finds that it is important to have equitable retirement benefits for service members within the Department of Law Enforcement.  Your Committee further finds that when a Class A service member is appointed as Director, Deputy Director, Sheriff, or investigator in the Department of Law Enforcement, they no longer qualify as Class A members and must forfeit the benefit of receiving 2.5 percent of their average final compensation for pension that other Class A members in the Department of Law Enforcement are entitled to.  Your Committee believes that this measure ensures equitable retirement benefits in the Department of Law Enforcement by including these positions as Class A members in the Employees' Retirement System.

 

     Your Committee amended this measure by:

 

     (1)  Requiring these positions in the Department of Law Enforcement to contribute 14.2 percent of their compensation to the annuity savings fund;

 

     (2)  Removing language that would have required members to have at least five years of service as Class A members prior to being appointed to one of these positions to qualify as Class A members under this measure;

 

     (3)  Adding language to these positions in statute for the purpose of assessing the employer's accrued liability contributions;

 

     (4)  Changing the effective date to July 1, 3000, to encourage further discussion; and

 

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1183, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1183, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

 

 

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

 

 

 

 

____________________________

JACKSON D. SAYAMA, Chair