STAND. COM. REP. NO. 1051
Honolulu, Hawaii
, 2001
RE: H.B. No. 562
H.D. 2
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committees on Labor and Transportation, Military Affairs and Government Operations, to which was referred H.B. No. 562, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"
beg leave to report as follows:
The purpose of this measure is to transfer the management of the Deferred Compensation Program from the Department of Human Resources to the Employees' Retirement System.
The measure also contains an effective date provision that transfers the authority to administer the Deferred Compensation Program from the Department of Human Resources Development to the Employees' Retirement System on July 1, 2020.
The Department of Budget and Finance, the Employees' Retirement System, and the Hawaii State Teachers Association submitted testimony in support of this measure.
Your Committees find that the Deferred Compensation Program was established in 1982 and is open to all state and county employees who are members of the Employees' Retirement System. Currently, the Deferred Compensation Program has approximately 27,000 participants and $930 million in assets. In 1996, Act 212, Session Laws of Hawaii 1996, established a similar program for part-time, temporary, seasonal, and casual employees. There are approximately 34,000 participants and $19 million in this plan.
Your Committees believe that the consolidation of the full-time and part-time deferred compensation programs under the Employees' Retirement System is prudent and will:
(1) Serve to strengthen the deferred compensation programs as the Employees' Retirement System already has a chief investment officer, an investment consultant, investment accounting staff, and other investment resources at its disposal;
(2) Consolidate the State's retirement and financial planning services; and
(3) Streamline operations and provide more financial leverage in negotiating fees and developing investment opportunities.
Your Committees have amended the measure by adding language that requires the Employees' Retirement System to pay to newly retired employees, interest on pension payments that take longer than ninety days to process and disburse.
Your Committees believe that the amended measure will result in better service for the members of the Employees' Retirement System.
As affirmed by the records of votes of the members of your Committees on Labor and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 562, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 562, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Labor and Transportation, Military Affairs and Government Operations,
|
____________________________ CAL KAWAMOTO, Chair |
____________________________ BOB NAKATA, Chair |
|