STAND. COM. REP. NO.  1032

Honolulu, Hawaii

                , 2015

RE:   S.B. No. 1090

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred S.B. No. 1090, S.D. 2, 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 ensure that retired State and county employees promptly receive their full retirement benefits by:

     (1)  Requiring, rather than allowing, State and county departments to provide payroll and personal information electronically to the Employees' Retirement System (ERS) in a format prescribed by the ERS;

     (2)  Including information on any changes or errors in payments that require correcting or updating with respect to payroll and personnel transactions as information required to be furnished to the ERS;

     (3)  Establishing penalties for departments or agencies that fail to provide the required information in the required format to the ERS;

     (4)  Providing the ERS with sole discretion to waive the penalties under certain situations; and

     (5)  Requiring the ERS to submit annual reports that detail compliance with the reporting requirements and penalties assessed, if any.

The Employees' Retirement System supported this measure.  The Department of Human Resources of the City and County of Honolulu and the Finance Department of the County of Hawaii opposed this measure.  The Department of Education commented on this measure.

     Your Committee has amended this measure by changing the effective date to July 1, 2115, to encourage further discussion.

     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 S.B. No. 1090, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1090, S.D. 2, 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,

____________________________

MARK M. NAKASHIMA, Chair