STAND. COM. REP. NO. 1370

Honolulu, Hawaii

RE:    S.C.R. No. 68

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 68, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE STATE AUDITOR TO CONDUCT A MANAGEMENT AND PERFORMANCE AUDIT OF THE BOARD OF TRUSTEES OF THE STATE DEFERRED COMPENSATION PLAN AND PLAN ADMINISTRATORS CONTRACTED BY THE BOARD,"

begs leave to report as follows:

     The purpose of this measure is to request the State Auditor to conduct a management and performance audit of the Board of Trustees of the state deferred compensation plan.

     Your Committee received sixty-eight comments on the measure.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that public employees depend upon the state deferred compensation program to achieve a secure retirement, especially those who remain in the non-contributory retirement plan.  Therefore, it is of critical importance that the Board of Trustees and its plan administrator provide timely, accurate, and easily accessible information to employees about their individual accounts.  The audit requested by this measure will provide answers to questions about how their employees' deferred compensation funds are managed.  The audit will also yield recommendations that will help employees keep abreast of these issues in the future.

     Your Committee has amended this measure by making technical nonsubstantive amendments for purposes of clarity and style.

     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 concurs with the intent and purpose of S.C.R. No. 68, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 68, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair