WHEREAS, under tax relief legislation passed in 2001, the pension and Individual Retirement Account (IRA) provisions will sunset on December 31, 2010; and

WHEREAS, although the tax-deductible contribution limit for IRA contributions will increase through December 31, 2010, IRA funding limits will actually shrink by 60% in 2011 if pension and IRA provisions sunset as provided in the 2001 tax relief legislation; and

WHEREAS, people 50 years of age and older have been allowed tax benefits for investing additional funds in their retirement accounts annually as "catch-up" contributions, and this practice should continue because it maximizes retirement "nest eggs"; and

WHEREAS, pensions should be portable because the average American changes jobs ten times throughout his career span; and

WHEREAS, minimum distribution rules for pensions and retirement accounts should be adjusted to reflect the increase in work years and life expectancy because the population of this country enjoys a longer, more active life than that of a few generations ago and tends to spend more years in the work force; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, that this body urges our Congressional delegation to continue to grant pension moneys and Individual Retirement Accounts favorable tax treatment and to repeal the provisions of the 2001 tax relief legislation that impedes such favorable treatment; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to members of Hawaii's Congressional delegation.

Report Title:

America's savings; protection