STAND. COM. REP. 321

Honolulu, Hawaii

, 2003

RE: H.B. No. 1159

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 1159 entitled:

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

begs leave to report as follows:

The purpose of this bill is to assist retirees whose pensions are not finalized within six months of their retirement by:

(1) Requiring the Employees' Retirement System (ERS) to pay interest of 4½ percent per year on any retroactive amount due to retirees;

(2) Allowing the ERS to assess the employing department or agency a $10 late fee for each month of delay in reporting information such as unused sick leave, balances, lump sum vacation payments, and other pertinent information; and

(3) Appropriating $150,000 out of the ERS investment earnings to modify the ERS' computer system.

The University of Hawaii Professional Assembly, Hawaii State Teachers Association, and ERS testified in support of this bill. The Department of Human Resources of the City and County of Honolulu opposed this bill.

Your Committee has learned that certain employees who retired in 1999 are still waiting for their pension paperwork to be processed. Your Committee feels that this bill will help to address the problems faced by the ERS in processing retirement benefits.

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 H.B. No. 1159 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

____________________________

MARCUS R. OSHIRO, Chair