STAND. COM. REP. NO. 2396

Honolulu, Hawaii

RE:    S.B. No. 2174

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Labor, to which was referred S.B. No. 2174 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

     The purpose of this measure is to include county representation in the Board of Trustees of the Employees' Retirement System.

     Specifically, this measure replaces one citizen/non-employee of the State member with a county representative member who is appointed by the Hawaii Council of Mayors.

     Testimony in support of this measure was submitted by one private organization.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that the counties contribute a considerable share to retirement system costs, and their employees and retirees are a significant portion of the System's membership.  As such, your Committee believes that it is appropriate to include county representation on the Employee's Retirement System Board of Trustees.  County representation will ensure that the Board possesses expertise about county finances and the county workforce in making benefit decisions.  Lack of representation may result in a situation where Board members do not fully consider the impact of their actions on the counties, resulting in changes that may not be cost beneficial in the aggregate or may affect the retirement income of county employees and retirees.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2174 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Labor,

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DWIGHT Y. TAKAMINE, Chair