STAND. COM. REP. 2199

Honolulu, Hawaii

, 2004

RE: S.B. No. 3106

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Labor and Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 3106 entitled:

"A BILL FOR AN ACT RELATING TO COUNTIES,"

beg leave to report as follows:

The purpose of this measure is to allow the counties to enter into agreements with the State to extend and make participation mandatory in the State deferred compensation retirement plan for part-time, temporary, and seasonal or casual public employees.

Testimony in support of this measure was submitted by the Mayor of the County of Maui and the Department of Finance for the County of Maui.

The Department of Human Resources Development submitted comments on the measure.

Your Committees find that savings to the counties as well as increased earnings for part-time, temporary, and seasonal or casual employees may be accomplished through the mandated participation of these employees in a deferred compensation plan. These employees would be able to have the money, which would otherwise be paid as FICA contributions, directed to a deferred compensation plan with those funds and any interest earned thereon made available to them upon termination. Additionally, the counties would be spared the expense of paying their share of the FICA contributions for those employees.

Your Committees determine that although, under the current law, each county is authorized to establish a deferred compensation retirement plan, allowing the counties to take advantage of the State's deferred compensation plan will enable the counties to save money and avoid any duplication of the efforts and resources involved in establishing and maintaining their own deferred compensation plans.

As affirmed by the records of votes of the members of your Committees on Labor and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3106 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Transportation, Military Affairs, and Government Operations,

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CAL KAWAMOTO, Chair

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BRIAN KANNO, Chair