STAND. COM. REP. NO. 1365-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 1281
                                     S.D. 2
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1281, S.D. 2, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to require:

     (1)  The Board of Trustees (Board) of the Employees'
          Retirement System (ERS) to appoint a chief investment
          officer and an assistant administrator; and

     (2)  The Attorney General to serve as legal advisor to the
          Board.

     For purposes of the public hearing, your Committee
circulated a proposed H.D. 2 version authorizing ERS to establish
a benefit restoration plan that would allow members of ERS to
receive benefits in excess of limits imposed by section 415 of
the Internal Revenue Code of 1986, as amended.

     The Board testified in support of the proposed draft.  The
Department of Budget and Finance testified in support of the
proposed draft, provided the benefit restoration plan does not
result in increases to employer contributions for pension
accumulation.

 
 
                                 STAND. COM. REP. NO. 1365-00
                                 Page 2

 

     Upon further consideration, your Committee has amended this
measure by deleting its substance and incorporating the
amendments made in the proposed H.D. 2 version.  Additional
technical, nonsubstantive amendments were made for purposes of
clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1281, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1281,
S.D. 2, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair