Report Title:

Employees' Retirement System; Board of Trustees; Membership

 

Description:

Adds a member recommended by the Council of Mayors to the composition of the Board of Trustees of the Employees' Retirement System order to provide for county representation on the board.  (HB849 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

849

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the counties need representation on the board of trustees of the employees' retirement system of the State.  The counties contribute a considerable share to retirement system costs, and their employees and retirees are a significant portion of the system's membership.  County representation will ensure that the board possesses expertise about county finances and the county workforce in making their benefit decisions.  Lack of representation may result in a situation where board members do not fully consider the costs of their actions on the counties, and changes are made that may not be cost beneficial in the aggregate, or may affect the retirement income of county employees and retirees.

     The purpose of this Act is to include county representation on the membership of the board of trustees of the employees' retirement system.

     SECTION 2.  Section 88-24, Hawaii Revised Statutes, is amended to read as follows:

     "§88-24  Composition of board.  The board of trustees shall consist of eight members as follows:

     (1)  The director of finance of the State, ex officio;

     (2)  Four members of the system, two of whom shall be general employees, one of whom shall be a teacher, and one of whom shall be a retirant to be elected by the members and retirants of the system under rules adopted by the board governing the election to serve for terms of six years each, one of the terms to expire on January 1 of each even-numbered year; provided that[,] if, after the close of filing of petitions for candidacy, a member is unopposed for election to a trustee position, the member shall be deemed and declared to be duly and legally elected to the position of trustee without an election; [and]

     (3)  [Three] Two citizens of the [State] state who are not employees, one of whom shall be a responsible officer of a bank authorized to do business within the [State,] state, or a person of similar experience, to be appointed by the governor, with the advice and consent of the senate, to serve for a term of six years each, one of the terms to expire January 1 of each odd-numbered year[.]; and

     (4)  A member appointed by the Hawaii council of mayors to represent the counties who shall serve for a term of six years with each term to expire on January 1 of an odd-numbered year.

Each trustee shall serve until the trustee's successor is elected or appointed, as the case may be, and qualified.  For the purpose of this section, the term "general employees" includes police officers and firefighters."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.