STAND. COM. REP. NO.2622
RE: S.B. No. 2078
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2078, S.D. 1, 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 require the Employees' Retirement System to pay interest on pensions that are not processed and issued within ninety days of retirement.
Your Committee finds that it is unreasonable for new retirees to wait an excessively long time for their first retirement check. Waiting ninety days means that unless the retiree has other sources of savings, three months might elapse before the retiree has the funds to pay for living and housing expenses from his or her retirement benefits. It is possible that the retiree would face hardships in paying for food, medicine, and rent under these circumstances. Consequently, your Committee finds that it is not unreasonable to require the Employees' Retirement System to pay interest on pensions that are not processed and issued within ninety days of retirement, especially since the Employees' Retirement System is earning interest on the moneys that are supposed to go to the pensioners.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2078, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
BRIAN T. TANIGUCHI, Chair