HB 1041 Hawaii House · 2026 Regular Session

RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.

Summary

Amends statutory language to conform the requirements of beginning dates and automatic cashout requirements with the Internal Revenue Code of 1986, as amended. Effective 7/1/3000. (HD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Dec 8, 2025

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What changed between versions

HB1041 → HB1041_HD1 · 5 edits

MODERATE

This bill updates the Employees' Retirement System to comply with the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022, ensuring federal tax qualification. It clarifies the 'required beginning date' for benefit distributions, mandates automatic payments if members do not apply, and establishes specific rules for handling members who return to service after 2006 or 2008. The bill also introduces presumptions for marital status when a member's information is outdated to ensure correct benefit calculations.

Scope change

The bill expands the scope of automatic benefit distribution rules and clarifies eligibility transitions for members returning to service after specific dates (June 30, 2006, and June 30, 2008).

REQUIREMENT

Updated the definition of 'required beginning date' and mandated that benefits must commence automatically by that date even if the member does not apply, to meet new federal tax rules.

Added provisions requiring the system to pay retroactive benefits with interest if automatic payments are not made by the required beginning date.

Added a requirement that if a member is deemed to have elected a benefit option based on an assumed spouse due to outdated information, the benefit must be converted to the maximum retirement allowance if the member was actually unmarried.

DEFINITION

Introduced new presumptions regarding marital status and beneficiary age when the system lacks current information, ensuring benefits are calculated correctly under federal guidelines.

ELIGIBILITY

Modified rules for members returning to service after June 30, 2006, and June 30, 2008, clarifying how their class status (A, B, C, or H) is determined and how their credited service is converted.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 11, 2025

Committee

Reported from LAB (Stand. Com. Rep. No. 320) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 4, 2025

Lower · Passed

The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kong, Reyes Oda.

lower

Jan 23, 2025

Committee

Referred to LAB, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors