STAND. COM. REP. NO. 200

Honolulu, Hawaii

RE: S.B. No. 1360

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Labor and Technology, 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:

(1) Conform the definition of "required beginning date" in chapter 88, Hawaii Revised Statutes, that governs the Employees' Retirement System, to the updated requirements of the Internal Revenue Code of 1986, as amended; and

(2) Repeal the automatic distribution requirement for non‑vested hybrid members so as not to mandate the administration of a third-party retirement account vendor.

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

Your Committee finds that the Securing a Strong Retirement Act of 2022 updated the federal tax qualification requirements of the Internal Revenue Code of 1986, as amended. Conforming amendments are needed to the State's Employees' Retirement System to remain in compliance with federal tax qualification requirements. This measure makes conforming amendments by defining "required beginning date" per the Internal Revenue Code of 1986, as amended, and removing the automatic distribution requirement for non-vested hybrid members.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1360 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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HENRY J.C. AQUINO, Chair