STAND. COM. REP. NO.355

Honolulu, Hawaii

, 2001

RE: H.B. No. 562

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 562 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 consolidate government retirement and deferred compensation programs under one roof, by transferring the Deferred Compensation Program from the Department of Human Resources to the Department of Budget and Finance, to be administered by the Board of Trustees of the Employees' Retirement System (ERS).

Your Committee received comments on this measure from ERS and the chair of the Deferred Compensation Board of Trustees.

Your Committee finds that many other state retirement systems are currently administering government employee deferred compensation programs. Your Committee further finds that after consolidation, ERS will continue contracting with private companies to provide administrative services and will provide better membership services, and utilize its existing investment expertise to strengthen the Deferred Compensation Program.

Your Committee has amended this measure by providing that Section 2 of the bill will take effect on July 1, 2020. Your Committee has also made technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

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 is in accord with the intent and purpose of H.B. No. 562, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 562, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

TERRY NUI YOSHINAGA, Chair