Bill Text: HI HB779 | 2012 | Regular Session | Amended

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Bill Title: Employees' Retirement System; State Contributions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB779 Detail]

Download: Hawaii-2012-HB779-Amended.html

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STAND. COM. REP. NO.  260

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 779

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 779 entitled:

 

"A BILL FOR AN ACT RELATING TO FRINGE BENEFIT CONTRIBUTIONS,"

 

begs leave to report as follows:

 

     The purpose of this bill is to mitigate the State's carrying cost for contributions made to the Employees' Retirement System (ERS) by requiring:

 

     (1)  State contributions to the ERS to be paid from the general fund on a quarterly basis, rather than monthly;

 

              (2)  Payments to be made before the end of the fiscal quarter;

 

     (3)  Departments and agencies whose employees are paid from state non-general funds to reimburse the state general fund for advance contributions; and

 

     (4)  Departments and agencies to pay monthly interest at 0.25 percent on the reimbursements.

 

     The Legislative Committee of the ERS and the Department of Budget and Finance opposed this bill.

 

     The State is facing a budget deficit of $71 million for fiscal year 2011, and a $771 million shortfall over the next two-year budget cycle.  The requirements listed in this bill would help alleviate the deficit with quarterly employer contribution payments to ERS, as opposed to the current payments on a monthly basis.  It would also allow for other reimbursements to the state general fund.

 

     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 H.B. No. 779 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

		____________________________ KARL RHOADS, Chair