STAND. COM. REP. NO. 2359

Honolulu, Hawaii

RE: S.B. No. 3099

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 3099 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEESꞌ RETIREMENT SYSTEM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Reduce the minimum number of years of credited service that qualified Tier 2 Employees' Retirement System members must have to be eligible for vested benefit status for service retirement allowance purposes from ten years to five years; and

(2) Appropriate funds for investments of the Employees' Retirement System.

Your Committee received testimony in support of this measure from the Office of the Governor; Department of Labor and Industrial Relations; Department of Budget and Finance; Employees' Retirement System Board of Trustees; City and County of Honolulu Department of Human Resources; University of Hawaii Professional Assembly; and United Public Workers, AFSCME Local 646, AFL-CIO.

Your Committee received comments on this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that state and county governments in Hawaii are experiencing the tough challenges and difficult impacts of job vacancies. Public sector vacancies impede economic growth and hamper a government's ability to serve the public. This measure will assist state and county employers in recruiting and retaining qualified employees by reducing the Employees' Retirement System vesting requirements.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3099, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3099, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

________________________________

HENRY J.C. AQUINO, Chair