Report Title:

University of Hawaii; Optional Retirement Plan; Made Permanent

Description:

Makes the optional retirement plan for University of Hawaii employees permanent. Changes the limit on how much the State contributes to the optional retirement plan on behalf of the employee by removing the $100,000 ceiling and tying the ceiling to the federal tax limit on annual compensation as set forth in the Internal Revenue Code.

HOUSE OF REPRESENTATIVES

H.B. NO.

23

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the university of hawaii.

 

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

SECTION 1. Section 88-8, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) For any employee whose compensation is paid in whole or in part from the general fund and who elects to become a member of the optional retirement system, the University of Hawaii shall make an annual contribution on behalf of the employee to the optional retirement system. The State shall remit to the University of Hawaii an amount equal to six per cent of the employee's compensation, taking into account any lag or smoothing arrangements that are in effect with respect to appropriations that the state employees' retirement system receives from the general fund, in lieu of any contribution that the State would have made to the state employees' retirement system on behalf of the employee had the employee not elected membership in the optional retirement system; provided that:

(1) The State's annual contribution for any such employee shall not exceed six per cent of [$100,000; and] the federal tax limit on annual compensation as set forth in section 401(a)(17) of the Internal Revenue Code of 1986, as amended; and

(2) The University of Hawaii shall be responsible for any contribution amounts in excess of the State's contribution."

SECTION 2. Act 180, Session Laws of Hawaii 2004, is amended by amending section 3 to read as follows:

"SECTION 3. This Act shall take effect upon its approval [and shall be repealed on July 1, 2009; provided that subsections (a), (b), (e), (f), (g), and (h) of section 88-8, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act]."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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