STAND. COM. REP. NO.  928

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 1292

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 1292 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 enable the Employees' Retirement System (ERS) to maintain its status as a tax-qualified retirement plan by complying with the Internal Revenue Code.  Among other things, this bill:

 

     (1)  Prohibits elective officers and judges from terminating        their ERS membership upon reaching the statutory cap on        retirement benefits even though they remain in office              and delay receipt of the benefits until a future                   separation date;

 

     (2)  Prohibits elective officers from joining the ERS at any        time during their term of office; and

 

     (3)  Requires elective officers to exercise a one-time,             irrevocable option to join the ERS when they are                   elected.

 

     ERS, Department of Budget and Finance, Department of the Attorney General, Office of Hawaiian Affairs, and Hawaii State Teachers Association testified in support of this bill.

 

     Your Committee has amended this bill by making technical, nonsubstantive amendments to correct drafting errors.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1292, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1292, H.D. 1.

 

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

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair