STAND. COM. REP. NO. 1152

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1291

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam President:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1291, H.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 clarify and conform existing statutes relating to the Employees' Retirement System (ERS) to current practices.  Among other things, this measure:

 

     (1)  Requires payment of interest to noncontributory members who have deductions erroneously made from their compensation;

 

     (2)  Eliminates the eligibility of a foster child to receive death benefits of a member if the member dies in service;

 

     (3)  Allows the ERS Board of Trustees (Board) to set the salary of the Chief Investment Officer in the same manner used to set the salary of the Administrator;

 

     (4)  Requires contributions exceeding 75 percent of the statutory cap established for judges, legislative officers, and elected officials to be refunded when they leave service to comply with federal income tax laws;

 

     (5)  Provides post retirement benefits to contributory and hybrid plan beneficiaries who select a monthly annuity instead of the lump sum balance;

 

     (6)  Requires the claims for survivor benefits to be filed no later than three years from the date of the retirant's death;

 

     (7)  Deletes the requirement that ordinary death benefits be computed in the same manner as ordinary disability benefits for deceased members with 10 years of service who are not eligible for retirement;

 

     (8)  Allows the Board to adopt actuarial tables, factors, or assumptions at a duly noticed meeting;

 

     (9)  Provides criteria for the conversion of noncontributory service to hybrid service once conversion is allowed; and

 

     (10) Allows hybrid plan members to retire at any time once their ordinary disability applications have been approved by the Board.

 

     The Department of Budget and Finance, Board of Trustees of the Employees' Retirement System, and the Hawaii State Teachers Association supported this bill.  The Employees' Retirement System (ERS) requested amendments to the bill to clarify statutory language and proposed changes. 

 

     Your Committee has amended this measure by complying with the ERS' request by amending Section 16 by amending the title and subparagraph (a) of Section 88-93, Hawaii Revised Statutes (HRS).   The measure was further amended by technical nonsubstantive amendments for style, clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1291, H.D. 1, as amended herein, and recommends that it pass

Second Reading in the form attached hereto as H.B. No. 1291, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

CLAYTON HEE, Chair