STAND. COM. REP. NO. 2633
RE: S.B. No. 2767
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2767, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM,"
begs leave to report as follows:
The purpose and intent of this measure is to maintain the tax-qualified status of the Employees' Retirement System.
Your Committee received testimony in support of this measure from the Employees' Retirement System.
Your Committee finds that the Employees' Retirement System is intended to be a tax-qualified retirement plan under section 401(a) of the Internal Revenue Code. Your Committee also finds that Act 86, Session Laws of Hawaii 2015, prospectively changes the cost to purchase membership service after June 30, 2020. However, the Employees' Retirement System tax counsel has concluded that the change in purchase cost allows for greater pre-tax retirement contributions than had been approved of by the Internal Revenue Service. Your Committee further finds that this measure makes amendments necessary to maintain the tax-qualified status of the Employees' Retirement System.
Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of consistency and clarity.
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. 2767, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2767, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair