Bill Text: HI SB1036 | 2013 | Regular Session | Amended

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Bill Title: Employees' Retirement System; Personnel

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-04-19 - Act 023, 4/18/2013 (Gov. Msg. No. 1123). [SB1036 Detail]

Download: Hawaii-2013-SB1036-Amended.html

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STAND. COM. REP. NO.  1137

 

Honolulu, Hawaii

                , 2013

 

RE:   S.B. No. 1036

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred S.B. No. 1036 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to improve the administration of the Employees' Retirement System (ERS).

 

     More specifically, this measure authorizes the ERS Administrator to appoint one or more investment officers to the ERS investment office.  The measure also changes the title of the Administrator of the ERS to "Executive Director" to be consistent with the titles of other state agencies' administrative heads.

 

     The Department of Budget and Finance and the Employees' Retirement System Board of Directors submitted testimony in support of the measure.

 

     Your Committee finds that the ERS investment portfolio is becoming increasingly sophisticated and requires the management and expertise of additional professionals.  Your Committee further finds that the current staffing structure of the ERS investment office is not consistent with the best practices of other similarly-sized public pension plans.  A larger staff of investment officers would ensure that the investment portfolio is well-researched, monitored, and evaluated, resulting in a much needed reduction of the ERS's unfunded liability.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1036 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

		____________________________ MARK M. NAKASHIMA, Chair