STAND. COM. REP. NO.  304

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 247

      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 Labor & Public Employment, to which was referred H.B. No. 247 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 allow retirees in the Employees' Retirement System who retired before November 30, 2004, to change their pension payment options if their beneficiaries predecease them.

     The Hawaii State Teachers Association testified in support of this bill.  The Department of Budget and Finance opposed this measure.  The Employees' Retirement System offered comments.

     Your Committee finds that individuals who retired after November 30, 2004, have the option of choosing to receive increased benefits if their beneficiaries predecease them.  This bill would extend the option to those who retired prior to November 30, 2004.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2059, to                    encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity,      consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 247, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 247, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ALEX M. SONSON, Chair