STAND. COM. REP. NO. 2791

Honolulu, Hawaii

RE:    S.B. No. 2751

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2751 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to modify the experience requirements of the members of the Employees' Retirement System Board of Trustees by replacing the requirement that one member be a responsible bank officer with a requirement that one board member have substantial experience providing financial services, including investments, to public, corporate, or private clients.

     Written comments in support of this measure were submitted by the Department of Budget and Finance and the Employees' Retirement System.

     Your Committee finds that it is imperative that one of the members of the Board have investment experience as investments are critical to the funding of the Employees' Retirement System, and have a great impact on the future sustainability of the System, especially during a period of economic decline or stabilization.

     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. 2751 and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair