Bill > HB1041

This bill updates Hawaii's Employees' Retirement System statutes to align with the Internal Revenue Code and the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act of 2022, focusing on required minimum distributions and retirement benefit commencement dates. Specifically, the bill modifies how and when retirement benefits must be distributed, clarifying that benefits must begin no later than the member's "required beginning date" as defined by the Internal Revenue Code. The bill introduces new provisions about automatic elections and presumptions for members who do not actively make retirement benefit selections, such as automatically choosing the maximum retirement allowance for unmarried members or option 3 for married members if no election is made. Additionally, the bill updates language related to returning to service after leaving employment, specifying conditions under which members' retirement service classes and contribution withdrawals are handled. These changes aim to ensure the state's retirement system remains compliant with federal tax regulations and provides clear guidelines for benefit distribution, with provisions designed to protect both the retirement system and its members by establishing standardized procedures for benefit commencement and distribution.

Budget and Finance, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1041&year=2026