Bill > SB1360

This bill amends Hawaii's Employees' Retirement System statutes to align with updated federal tax requirements from the SECURE 2.0 Act of 2022, specifically addressing required minimum distributions and automatic disbursements. The bill updates provisions related to the "required beginning date" for retirement benefits, which is the date by which retirement benefits must start being paid, removing the previous fixed age of 70½ and instead referencing the most current Internal Revenue Code standards. Key changes include modifying how retirement benefits are automatically distributed if a member does not make an election, establishing presumptions about marital status when determining benefit options, and updating rules about returning accumulated contributions for members who leave and return to service. The bill also ensures that the state's retirement system maintains its federal tax qualification by conforming to the latest federal tax code requirements. These modifications aim to provide more flexibility and clarity in retirement benefit distributions while ensuring compliance with current federal tax regulations. The bill will take effect immediately upon approval.

Budget and Finance, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1360&year=2025