CONFERENCE COMMITTEE REP. NO. 162

Honolulu, Hawaii

, 2025

RE: S.B. No. 935

S.D. 2

H.D. 3

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 935, S.D. 2, H.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose and intent of this measure is to revise certain provisions regarding state employee retirements.

More specifically, the measure:

(1) Amends the retirement allowance for a member who first earns credited service as a judge after June 30, 2031, to 1.75 per cent of the member's average final compensation for each year of credited service as a judge;

(2) Includes sheriffs and deputy sheriffs in the enhanced retirement benefits category;

(3) Reduces from ten years to five years, the minimum number of years of credited service that qualified Class H, Tier 2 members of the Employees' Retirement System must have to be eligible for vested benefit status for service retirement allowance purposes; and

(4) Increases employer contributions to offset the resulting fiscal liability.

Your Committee on Conference finds that easing the requirements for certain public employees to be eligible for retirement benefits could help to improve employee recruitment and retention. Your Committee believes that the impacts and benefits of these potential eligibility changes merit additional study.

Your Committee on Conference has amended this measure by:

(1) Deleting language that would:

(A) Include sheriffs and deputy sheriffs in the enhanced retirement benefits category under section 88-74(f), Hawaii Revised Statutes; and

(B) Reduce from ten years to five years, the minimum number of years of credited service that Class H, Tier 2 members of the Employees' Retirement System must have to be eligible for vested benefit status for service retirement allowance purposes;

(2) Requiring the Department of Human Resources Development to study the impacts and benefits of reducing from ten years to five years, the minimum number of years of credited service that qualified Class H, Tier 2 members of the Employees' Retirement System must have to be eligible for vested benefit status for service retirement allowance purposes;

(3) Appropriating $300,000 in general funds to the Department of Human Resources Development to conduct the study; and

(4) Changing the effective date to July 1, 2025.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 935, S.D. 2, H.D. 3, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 935, S.D. 2, H.D. 3, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ HENRY J.C. AQUINO Chair
____________________________ DAVID A. TARNAS Co-Chair
____________________________ MIKE LEE Co-Chair