HB 1036 Summary

• Amends Chapter 88, Hawaii Revised Statutes, to add requirements ensuring the Employees' Retirement System maintains its tax-qualified status under section 401(a) of the Internal Revenue Code.

• Establishes a "required beginning date" of April 1 of the calendar year following either employment termination or attainment of age 70½, whichever is later, by which benefit distributions must commence or accumulated contributions must be paid.

• Requires automatic payment of service retirement benefits retroactive to the required beginning date with regular interest if the system fails to distribute benefits by that date.

• Creates a deemed election process for members who fail to elect a retirement option, with different default elections based on marital/civil union/reciprocal beneficiary status at the required beginning date.

• Incorporates specific language regarding death benefits for ERS members who die during qualified military service to comply with requirements of the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act).