STAND. COM. REP. NO. 772

Honolulu, Hawaii

RE: S.B. No. 1360

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1360 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

The purpose and intent of this measure is to conform the Employees' Retirement System to recent amendments made to the Internal Revenue Code.

Specifically, this measure:

(1) Amends the required beginning date for member benefits to conform to the definition of "required beginning date" in section 401(a)(9) of the Internal Revenue Code of 1986, as amended; and

(2) Conforms to the Internal Revenue Code the process and requirements for the Employees' Retirement System to return the accumulated contributions of former nonvested class A or B members.

Your Committee received written comments in support of this measure from the Employees' Retirement System.

Your Committee finds that this measure will enable the Employees' Retirement System to continue to administer required minimum distributions to members in accordance with the Internal Revenue Code, which will allow members to defer their taxable income and ultimately pay less federal taxes.

Your Committee has amended this measure by:

(1) Correcting a reference to the SECURE 2.0 Act of 2022; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 1360, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1360, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair