STAND. COM. REP. NO. 492

Honolulu, Hawaii

, 2005

RE: H.B. No. 1547

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 1547 entitled:

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

begs leave to report as follows:

The purpose of this bill is to provide greater employer representation on the Board of Trustees (Board) of the Employees Retirement System (ERS). Among other things, this bill:

(1) Increases the number of Board members from eight to 14;

(2) Provides that an equal number of Board members shall represent employees and employers;

(3) Requires that, of the public employer representatives, two be appointed by the Governor, two be appointed by the mayor of the City and County of Honolulu, and one each be appointed by the mayors of the counties of Maui, Kauai, and Hawaii; and

(4) Requires that employee representatives consist of:

(a) A representative from each of the organizations certified as the exclusive representative for state or county employees; and

(b) One elected retiree.

 

The Department of Human Resources of the City and County of Honolulu testified in support of this measure. The Department of Budget and Finance (B & F) and Board of the ERS opposed this bill.

Your Committee finds that although a number of members on the Board represent employees, only the Director of B & F represents the employers. Given that decisions of the Board affect all of the political subdivisions of the State and the budgets of these employers, it is logical that they should also be represented on the Board. Equal representation of both employees and employers on the Board will ensure that fiscal decisions made by the Board are for the benefit of all concerned parties.

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 H.B. No. 1547 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,

 

____________________________

KIRK CALDWELL, Chair