STAND. COM. REP. NO.  1579-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2751

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2751, H.D. 1, 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 protect the future sustainability of the Employees' Retirement System, especially during a period of economic decline or stabilization, by modifying the experience requirements of the members of the Employees' Retirement System Board of Trustees.  Specifically, this measure changes the requirement that one member of the three board members representing the citizens of the State of Hawaii who are not public employees be a responsible bank officer by instead requiring that two of the three members have substantial experience providing financial services, including investments, to public, corporate, or private clients.

The Department of Budget and Finance and the Board of Trustees of the Employees' Retirement System supported this measure.

     Your Committee notes that consideration should be given as to whether the membership of the Board of Trustees of the Employees' Retirement System should include a pension actuary.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2751, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair