RESOLUTION

WHEREAS, the Employees' Retirement System (ERS) was established in 1926 to provide retirement allowances and other benefits to state and county government employees in Hawaii; and

WHEREAS, since its inception, the ERS has experienced rapid growth in membership, benefit payments, and assets, and pays pensions for more than 30,000 former employees and their beneficiaries; and

WHEREAS, the general administration of the ERS is under the direction of the ERS Board of Trustees with certain areas of administrative control with the Department of Budget and Finance; and

WHEREAS, in addition to administering the retirement and survivor benefits program for state and county government employees, ERS accounts for and safeguards assets in the ERS investment portfolio and invests funds to help finance the program; and

WHEREAS, as of June 30, 2002, the total market value of ERS assets was $8,005,268,894 compared to $9,874,079 as of June 30, 2000; and

WHEREAS, due to various factors, including questionable investment decisions, the declining economy, and market volatility after the September 11, 2001, terrorist attacks, concerns have been raised about ERS' ability to meet the needs of current and future retirees; and

WHEREAS, encouraging ERS to invest at least two percent of its portfolio in Hawaii-based firms would have a positive impact on the State's economy without jeopardizing the stability of ERS' total investments; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, the Senate concurring, that this body requests the Employees' Retirement System to invest at least two percent of its investment portfolio in Hawaii-based firms; and

BE IT FURTHER RESOLVED that ERS report on what it has done to invest at least two percent of its investment portfolio in Hawaii-based firms; and

BE IT FURTHER RESOLVED that ERS report it findings and recommendations, including any proposed legislation if necessary, to the Legislature no later than 20 days before the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Administrator and Chair of the Board of Trustees of ERS.

Report Title:

ERS