STAND. COM. REP. NO. 861

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1324

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1324, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO DIVORCE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require the Employees' Retirement System to directly pay a portion of a member's pension or related benefit to the former spouse of the member, in response to an award in a divorce action.

 

     Your Committee received written comments in support of this measure from the Hawaii State Bar Association, Family Law Section; and three individuals.  Your Committee received written comments in opposition to this measure from the Employees' Retirement System.

 

     Your Committee finds that this measure will ensure that a member's or retirant's pension or related benefits are correctly divided pursuant to a divorce action award and promptly paid, with the appropriate tax consequences for both the member or retirant and the former spouse.  Such a requirement will also help conform chapter 88, HRS, to the federal Employee Retirement Income Security Act, which applies only to private employers.

 

     Your Committee has amended this measure by:

 

(1)  Replacing the general funds with the expense fund of the Employees' Retirement System as the source of funds for the implementation of this measure; and

 

(2)  Making technical nonsubstantive amendments for the purposes of clarity, style, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1324, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1324, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair