STAND. COM. REP. NO. 2913

Honolulu, Hawaii

RE: S.B. No. 3070

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3070 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to phase in a lower maximum projected funding period limit in which to amortize the total unfunded actuarial accrued liability of the Employees' Retirement System.

Your Committee received written comments in support of this measure from the Employees' Retirement System and Department of Budget and Finance.

Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that this measure's requirement to incrementally reduce the amortization period for employer contribution rate amortization from thirty years to twenty years by 2029 will help to strengthen both the Employees' Retirement Systems' funding policy and the State's long-term financial position by providing a prudent and timely response to address the plan's unfunded actuarial accrued liability.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3070 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair