STAND. COM. REP. NO.  898

 

Honolulu, Hawaii

                , 2013

 

RE:   H.B. No. 805

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 805 entitled:

 

"A BILL FOR AN ACT RELATING TO FEDERAL TAX QUALIFICATION OF THE EMPLOYEES' RETIREMENT SYSTEM,"

 

begs leave to report as follows:

 

     The purpose of this measure is to amend the Employees' Retirement System laws to comply with Internal Revenue Code requirements and vesting rules in order to maintain the system's status as a tax-qualified retirement plan.

 

     The Department of Budget and Finance and the Administrator of the Employees' Retirement System supported this measure.

 

     Your Committee has amended this measure by:

 

(1)  Clarifying the terms "stability period" and "look-back month" by citing the relevant United States Treasury Regulations sections;

 

(2)  Changing its effective date to July 1, 2030, to promote further discussion; and

 

(3)  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. 805, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 805, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

SYLVIA LUKE, Chair