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HOUSE OF REPRESENTATIVES

H.B. NO.

579

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE BOARD OF TRUSTEES OF THE EMPLOYEES' RETIREMENT SYSTEM.

 

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

SECTION 1. 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] nine members as follows:

(1) The director of fiInance 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] Four citizens of the State who are not employees, one of whom shall be a responsible officer of a bank authorized to do business within the 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.

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 2. Section 88-29, Hawaii Revised Statutes, is amended to read as follows:

"88-29 Officers, employees, legal adviser. The [board of trustees] governor shall [elect from its membership] appoint a chairperson[, and] from among members of the board of trustees. The board of trustees by a majority vote of all its members, shall appoint an administrator and a chief investment officer who shall be exempt from chapter 76 and 77 and serve under and at the pleasure of the board. Effective July 1, 1992, the salary of the administrator shall be set by the board within the range established for deputy directors. The board shall engage actuarial and other services as shall be required to transact the business of the system. The compensation for all services engaged by the board, and all other expenses of the board necessary for the operation of the system, shall be paid at rates and in amounts the board shall approve.

The attorney general or an appointed representative may serve as legal adviser to the board of trustees or the board of trustees may select its own legal counsel."

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 Statutory material to be repealed is bracketed.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

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

INTRODUCED BY:

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