REPORT TITLE:
Employee Benefits/UH/DOE


DESCRIPTION:
Authorizes the University of Hawaii and the department of
education to establish custodial accounts for the deposit of
annuity payments of employees of the University of Hawaii and the
department of education.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           951
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT
RELATING TO EMPLOYEE BENEFIT PLANS.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 303, Hawaii Revised Statutes, is amended
 
 2 as follows:
 
 3      1.  By amending the title to read:
 
 4                           "CHAPTER 303
 
 5        EMPLOYEES' ANNUITY AND CUSTODIAL ACCOUNT CONTRACTS"
 
 6      2.  By amending section 303-1, Hawaii Revised Statutes, to
 
 7 read:
 
 8      "303-1 Purpose.  The purpose of this chapter is to provide
 
 9 the means by which employees of the department of education and
 
10 the University of Hawaii may qualify for the favorable benefits
 
11 of section 403(b) of the Internal Revenue Code of [1954,] 1986,
 
12 as amended."
 
13      3.  By amending section 303-2, Hawaii Revised Statutes, to
 
14 read:
 
15      "303-2 Contract for purchase of annuity[.] or investment
 
16 in custodial account.  The department of education and the
 
17 University of Hawaii, on behalf of any employee of the respective
 
18 institutions, may enter into a written agreement with any [such]
 
19 employee to purchase for the employee [an]:
 
20      (1)  An annuity contract from an insurer who holds a
 

 
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                                     S.B. NO.           951
                                                        
                                                        

 
 1           certificate of authority under section 431:3-201 [or
 
 2           who offers an];
 
 3      (2)  An annuity contract qualified under section 401(k) of
 
 4           the Internal Revenue Code[,] of 1986, as amended, which
 
 5           provides a nationwide retirement trust for a group of
 
 6           college or university football coaches who, due to the
 
 7           nature of their jobs, change employers frequently.
 
 8      The department of education or the University of Hawaii may
 
 9 pay amounts to a custodial account established on behalf of the
 
10 employee pursuant to section 403(b)(7) of the Internal Revenue
 
11 Code of 1986, as amended."
 
12      4.  By amending section 303-3, Hawaii Revised Statutes, to
 
13 read:
 
14      "303-3 Premium withholding.  The department of education
 
15 and the University of Hawaii may also enter into an agreement
 
16 under which the employer shall withhold from the salary of the
 
17 employee the amount of the premiums payable on account of the
 
18 annuity contract[,] or custodial account, and shall make [such
 
19 premium] the payments on behalf of the employee."
 
20      5.  By amending section 303-4, Hawaii Revised Statutes, to
 
21 read:
 
22      "303-4 Adoption of rules.  Each employer may adopt rules
 
23 to implement this chapter including, but not [by way of
 

 
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                                     S.B. NO.           951
                                                        
                                                        

 
 1 limitation,] limited to:
 
 2      (1)  [the] The method of filing an election to accept an
 
 3           adjustment in earnings and revocation of the
 
 4           election[,];
 
 5      (2)  [the] The effective date of an election[,];
 
 6      (3)  [changes] Changes in the amount of the adjustment in
 
 7           earnings[,]; and 
 
 8      (4)  [selection] Selection of the insurance company or
 
 9           companies from which the annuity contracts are to be
 
10           purchased[.] or to which payments into a qualified
 
11           custodial account are to be made."
 
12      SECTION 2.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 3.  This Act shall take effect on January 1, 2000.
 
15 
 
16                           INTRODUCED BY:  _______________________