STAND. COM. REP. NO. 2779

Honolulu, Hawaii

RE: S.B. No. 3096

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3096, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM'S EMPLOYER CONTRIBUTIONS FOR NORMAL COST AND ACCRUED LIABILITY,"

begs leave to report as follows:

The purpose and intent of this measure is to increase, from forty-one percent to forty-four percent, the employer contribution rate for normal cost and accrued liability to the Employees' Retirement System for police officers, firefighters, and corrections officers, starting with fiscal year 2027-2028.

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

Your Committee received written comments on this measure from the County of Hawaii Mayor's Office.

Your Committee finds that the unfunded accrued liability of the Employees' Retirement System for police officers, firefighters, and corrections officers has grown due to unanticipated salary increases for those positions. Your Committee further finds that this measure will help to address the funding gap and reduce the need for future increases in contributions among all employers who share financial liability across the System.

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. 3096, S.D. 1, 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