STAND. COM. REP. NO. 2851
Honolulu, Hawaii
RE: S.B. No. 2274
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2006
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2274 entitled:
"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"
begs leave to report as follows:
The purpose of this measure is to amend certain provisions of the State's Employees' Retirement System law to maintain its tax qualified status.
Specifically, the measure:
(1) Amends section 88-321, Hawaii Revised Statutes, to prohibit former contributory class A plan members of the Employees' Retirement System who withdrew or received refunds of their contributions under section 414(h)(2) of the Internal Revenue Code of 1986, as amended, while still employed by the State or a county, from joining the contributory class H (hybrid) plan; and
(2) Repeals section 88-46.5, Hawaii Revised Statutes, which allows contributory class A and contributory class H members to withdraw their accumulated contributions while still employed by the State or county if beset by economic hardship.
Your Committee finds that the measure is necessary to protect the Employees' Retirement System's tax qualified status under the Internal Revenue Code of 1986, as amended.
Your Committee has amended the measure by:
(1) Clarifying that the measure also pertains to class B members of the Employees' Retirement System;
(2) Clarifying that a former class A or class B member who:
(A) After June 30, 1984, returns to service without vested benefit status;
(B) Is required to enroll as a class C member; and
(C) Has been refunded all accumulated contributions;
Does not have the option to be a class H member upon a return to service; and
(3) Making technical nonsubstantive amendments for the purposes of clarity and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2274, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2274, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
____________________________ BRIAN T. TANIGUCHI, Chair |
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