STAND. COM. REP. NO. 782
Honolulu, Hawaii
, 2011
RE: H.B. No. 1036
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Sixth State Legislature
Regular Session of 2011
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 1036 entitled:
"A BILL FOR AN ACT RELATING TO FEDERAL TAX QUALIFICATION REQUIREMENTS FOR THE EMPLOYEES' RETIREMENT SYSTEM,"
begs leave to report as follows:
The purpose of this bill is to protect the status of the Employees' Retirement System (ERS) as a tax-qualified retirement plan under section 401(a) of the Internal Revenue Code (IRC) by adding a new section to Hawaii's ERS law to include provisions required by federal law. Among other things, this bill:
(1) Inserts specific language into Hawaii's ERS law that addresses the requirements contained in the Heroes Earnings Assistance and Relief Tax Act of 2008 requiring a tax-qualified retirement plan to provide the survivors of a member with any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the member's ERS plan had the member resumed and then terminated employment on account of death in the case of a member who dies while performing qualified military service; and
(2) Establishes the requirements for minimum pension distributions in accordance with section 401(a)(9) of the IRC.
The ERS Board of Trustees testified in support of this bill.
Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1036, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1036, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ MARCUS R. OSHIRO, Chair |
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