STAND. COM. REP. NO.  319

 

Honolulu, Hawaii

                , 2025

 

RE:   H.B. No. 813

      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. 813 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 change the minimum number of years of credited service for qualified Tier 2 employees' retirement status from 10 years to 5 years, to be eligible for vested service retirement allowances.

 

     Your Committee received testimony in support of this measure from the Office of the Governor; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi State Teachers Association; United Public Workers, AFSCME Local 646, AFL-CIO; and one individual.  Your Committee received comments on this measure from the Employees' Retirement System.

 

     Your Committee finds that the State's public sector continues to struggle with widespread employment vacancies which have negative impacts on providing essential services to the public.  Your Committee also finds that reducing the minimum requirement of credited service for Tier 2 members from 10 years to 5 years to be eligible for vested benefits can attract candidates to apply for state and county jobs, while incentivizing current government employees to continue working in the public sector.  Your Committee believes that this measure supports the recruitment and retainment of qualified employees to fill the vacancies in the public sector.

 

     Your Committee amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

 

     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. 813, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 813, H.D. 1, and be referred to your Committee on Finance.

 

 

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

 

 

 

 

____________________________

JACKSON D. SAYAMA, Chair