CONFERENCE COMMITTEE REPORT NO. 146

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2458
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2458, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT
    SYSTEM,"

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 of this bill is to reduce the State's and
counties' employer contributions to the Employees' Retirement
System by extending the payment schedule for the actuarial
present value cost of the 1994 early retirement incentive bonus
from five years to nineteen years beginning July 1, 1997.

     Your Committee on Conference has amended this bill by:

     (1) Requiring the State and counties to make separate
         additional payments to the Employees' Retirement System
         in the amounts required to liquidate the additional
         actuarial present value of benefits over a period of

 
 
                            CONFERENCE COMMITTEE REPORT NO. 146
                            Page 2



         time as specified in section 88-122(d), Hawaii Revised
         Statutes (HRS);

     (2) Amending the bill to liquidate each employer's total
         unfunded actuarial present value of benefits as of June
         30, 1997 instead of June 30, 1999;

     (3) Deleting language that referenced the unfunded actuarial
         present values of benefits as part of the unfunded
         accrued liability under sections 88-122 and 88-123, HRS;

     (4) Providing it shall take effect, upon approval, on June
         30, 1999; and

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

     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 H.B. No. 2458, S.D. 1, as amended herein, and recommends that
it pass Final Reading in the form attached hereto as H.B. No.
2458, S.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              TERRY NUI YOSHINAGA, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       KENNY GOODENOW, Co-Chair




______________________________
CAROL FUKUNAGA, Co-Chair


 
                            CONFERENCE COMMITTEE REPORT NO. 146
                            Page 3






______________________________
ANDREW LEVIN, Co-Chair