STAND. COM. REP. NO.880-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2715

S.D. 1

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Labor and Public Employment, to which was referred S.B. No. 2715, S.D. 1, entitled:


begs leave to report as follows:

The purpose of this bill is to simplify and facilitate the administration and processing of pension benefits by the Employees' Retirement System (ERS).

Specifically, this bill:

(1) Allows a pensioner's beneficiary to receive a full monthly pension for the month in which the pensioner dies;

(2) Provides for monthly benefit payments to individuals who retire or become beneficiaries after January 1, 2003;

(3) Authorizes the ERS to require state or county departments or agencies to furnish information in a timely manner;

(4) Simplifies the computation of retirement service credits and average final compensation;



(5) Extends the period to file written application specifying the day of retirement to 150 days; and

(6) Provides that retirement is effective on the first day of a month.

ERS testified in support of the intent of this measure.

Your Committee finds that the processing and payment of retirement, disability, and death benefits on a timely basis is beneficial to both the members of ERS and the state and county payroll and personnel offices.

However, your Committee understands that there are concerns regarding possible abuse of the computation of credited service which, according to the actuarial study, may lead to increased employer contributions to the ERS. Accordingly, your Committee has amended this measure by:

(1) Deleting language regarding the calculation of credited service; and

(2) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2715, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2715, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,