STAND. COM. REP. NO. 1268-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2879

S.D. 2

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2879, S.D. 2, H.D. 1, 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 bill is to conform the Employees' Retirement System (ERS) statutes to the federal Internal Revenue Code (IRC) by, among other things:

(1) Incorporating federal tax provisions relating to pension plans of State and local government;

(2) Authorizing the Board of Trustees (Board) of ERS to adopt as rules various requirements that are not presently part of ERS' administrative rules; and

(3) Providing the Board with expedited rulemaking authority for the limited purpose of adopting rules to comply with the requirements of IRC Section 401(a).

ERS supported this bill with amendments.

 

Your Committee has amended this bill by:

(1) Clarifying that eligible plans refer to retirement plans; and

(2) Making technical, nonsubstantive amendments for clarity 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 S.B. No. 2879, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2879, S.D. 2, H.D. 2.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair