Makes participation in the State's deferred compensation retirement plan for part-time, temporary, and seasonal or casual employees optional.

A BILL FOR AN ACT

SECTION 1. Section 88F-2, Hawaii Revised Statutes, is amended to read as follows:

"§88F-2 State deferred compensation retirement plan for state and county part-time, temporary, and seasonal or casual employees. (a) The State may establish a deferred compensation retirement plan in accordance with sections 457 and 3121 of the Internal Revenue Code of 1986, as amended, for the benefit of employees to defer a portion of their compensation to a future period of time. Participation in the plan shall be [mandatory, with] optional. If a part-time, temporary, and seasonal or casual employee elects to participate in the deferred compensation retirement plan, a mandatory payroll deduction by the employee shall be made that is equal to seven and five-tenths per cent of the employee's gross monthly wages, which shall be contributed to the plan. A county may enter into a formal agreement with the State to extend the State's plan and its provisions to part-time, temporary, and seasonal or casual employees of the county; provided that:

(b) For part-time, temporary, and seasonal or casual employees who qualify for social security benefits and who elect to not participate in the deferred compensation retirement plan established under subsection (a), the State shall make the appropriate contributions to the employee's social security account."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.