Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1194 entitled:

begs leave to report as follows:

The purpose of this measure is to require public employee members of the State Deferred Compensation Plan (Plan) board of trustees to be elected by the Plan membership.

Presently, the Plan's board of trustees is comprised of seven members. Two members are ex officio state department directors, and five members are public employee Plan members appointed by the Governor and confirmed by the Senate.

Your Committee finds that a more democratic process is needed with respect to the selection of public employee board members to allow the Plan's membership to participate more directly in the administration of the Plan. By requiring the election of public employee board members by the Plan's membership, this bill recognizes the right of the Plan's membership to administer its own Plan.

Your Committee has amended the bill by requiring the Plan to pay for the elections, by correcting a drafting error, and by making other technical, nonsubstantive amendments for purposes of drafting style and clarity.

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. 1194, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1194, S.D. 1.