Employees' Retirement System of the State of Hawaii

The board meeting agenda includes a call to order and public comment session, followed by an executive session. The executive session is scheduled to consult with the board's attorneys regarding powers, duties, and privileges concerning a compromise and settlement, as well as the consideration of information requiring confidentiality under the state constitution.

The Committee reviewed the upcoming meeting timeline and discussed the recruitment process following the announced departure of the Chief Investment Officer, considering the potential need for a special Board meeting to finalize a transition plan. Additionally, the Committee reviewed the Exempt Staff Compensation Methodology, discussing tiered adjustments and future steps for annual performance evaluations and budget framework alignment. The Committee also requested staff to procure services for an update to the 2022 Compensation Study. An executive session was held to discuss and approve confidential minutes.

The Board conducted elections for the positions of Chair and Vice Chair. The Executive Director provided a report covering administration, investments, policy, legislative matters, and the proposed executive branch supplemental budget. Staff reported on monthly operations, staffing recruitment, and updates on the pension administration system and custodial agreement renewals. Key legislative proposals were reviewed, including employer contributions for normal cost and accrued liability, and the exemption of certain executive positions from civil service requirements. The Board received various annual reports, including actuarial valuations, stress tests, and reviews of real assets, investment policy statements, benchmarking, and plan liquidity. Additionally, the Board met in executive session to consult on legal and fiduciary matters, including ongoing litigation.

The Board received public testimony regarding investment risks and potential conflicts with certain investment funds. Discussions included the election of a new Vice Chair and committee assignment updates. The Executive Director provided a report on legislative developments, staffing, and system operations. Additionally, the Board reviewed and approved various committee charters, including those for Audit, Human Resources, and Legislative committees. Presentations were provided on the total fund performance, diversifying strategies, and an adoption of an active risk budget. Furthermore, the Board authorized the administration to proceed with a General Trustee election to fill a vacancy.

The Committee held elections for Chair and Vice Chair, reviewed and accepted the Legislative Committee Charter with no changes, and discussed recommended positions regarding various 2026 legislative bills impacting the retirement system. Additionally, the Committee addressed potential legislative proposals for investments, administration, and operations for future sessions.