STAND. COM. REP. NO.961-02

Honolulu, Hawaii

, 2002

RE: H.C.R. No. 130

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.C.R. No. 130 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A MANAGEMENT AND PERFORMANCE AUDIT OF THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

The purpose of this concurrent resolution is to request the Auditor to conduct a management and performance audit of the Employees' Retirement System (ERS).

A concerned citizen testified in support of this measure. The Board of Trustees for the ERS commented on this measure.

Recent events regarding the ERS, especially the loss of $1.4 billion in poor investments, and questions regarding the retention of an underperforming investment firm with ties to a former ERS administrator, have brought to light some problems within the ERS that your Committee believes need to be addressed through an audit.

Although some of these concerns were quelled by the testimony of the ERS, your Committee feels that an audit may help to improve the overall structural set-up, management, and efficiency of the ERS. The audit should also include an assessment concerning the impact of statutorily-imposed quorum and voting requirements upon the ERS Board of Trustees. It is not clear whether such requirements assist or hinder the trustees.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 130 and recommends that it be referred to the Committee on Finance.

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

 

____________________________

SCOTT K. SAIKI, Chair