CONFERENCE COMMITTEE REP. NO. 91-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 3070

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3070, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM FUNDING PERIOD,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to gradually reduce the Employees' Retirement System's maximum funding period to amortize the total unfunded accrued liability from thirty years to twenty years.

Your Committee on Conference finds that due to the Employees' Retirement System's (System) long-term investment performance, the funding period in which the System is expected to be fully funded has steadily decreased from the forecasted thirty years in fiscal year 2015-2016 to twenty-four years in fiscal year 2021-2022. Therefore, this measure will reduce the maximum projected funding period to amortize the total unfunded accrued liability of the System from thirty years to twenty years, which would lower future costs, align the System with new Actuarial Standards of Practice, and allow the State to receive favorable ratings from bond rating agencies.

Your Committee on Conference has amended this measure by inserting an effective date of July 1, 2024.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3070, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3070, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SCOT Z. MATAYOSHI Co-Chair	____________________________ HENRY J.C. AQUINO Chair
____________________________ ANDREW GARRETT Co-Chair	____________________________ SHARON MORIWAKI Co-Chair