STAND. COM. REP. NO. 3721

Honolulu, Hawaii

RE: H.C.R. No. 62

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.C.R. No. 62 entitled:

"HOUSE CONCURRENT RESOLUTION URGING THE UNITED STATES OFFICE OF PERSONNEL MANAGEMENT TO TREAT HAWAII FEDERAL EMPLOYEES WITH REGARD TO PAY AND RETIREMENT BENEFITS THE SAME AS FEDERAL EMPLOYEES WHO RESIDE IN THE FORTY-EIGHT CONTIGUOUS UNITED STATES,"

begs leave to report as follows:

The purpose of this measure is to express support for congressional efforts to ensure that federal employees in Hawaii are afforded the same or equitable pay and retirement benefits as federal employees residing in the forty-eight contiguous United States.

Testimony in support of this measure was submitted by the Federal Law Enforcement Officers Association – Hawaii Chapter #54, the International Federation of Professional and Technical Engineers, COLA Defense Committee of Oahu, Inc. and eight individuals.

Your Committee finds that federal employees in Hawaii, as well as Alaska, are treated differently than their counterparts who reside in the contiguous United States. Federal employees in Hawaii and Alaska benefit from cost of living adjustments with respect to their pay; however, they are not similarly afforded non-foreign area cost of living adjustments to their basic pay for purposes of retirement. Additionally, Hawaii and Alaska federal employees do not receive locality pay in addition to their salaries, whereas federal employees of the forty-eight contiguous United States receive anywhere from twelve to twenty-eight percent locality pay adjustments. Your Committee further finds that locality pay is factored into a federal employee's "basic pay" for purposes of calculating retirement benefits, thereby placing Hawaii and Alaska federal employees at a further monetary disadvantage in retirement.

Your Committee supports the merit principle, the principle of equal pay for equal work, and believes that the current treatment of federal employees in Hawaii is unjustly discriminatory and unwarranted. Your Committee believes that the disparity in the treatment of Hawaii and Alaska federal employees and federal employees within the forty-eight contiguous United States is solely attributable to the former states' locations. Understanding that the cost of living in Hawaii exceeds that of most other states, your Committee believes it is necessary to equitably compensate federal employees in Hawaii. This measure will demonstrate the Legislature's support of the fair and equitable treatment of federal employees in Hawaii with regard to pay and retirement benefits.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 62, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Labor,

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BRIAN KANNO, Chair