HI HB808

Preserve the tax-qualified status of the Employees' Retirement System (ERS) by excluding civil union partners from spousal rights where federal law restricts such benefits to spouses only.

The ERS is a tax-exempt, qualified retirement plan under Internal Revenue Code section 401(a); losing tax-exempt status would subject member contributions to federal income tax and tax all members on accrued benefits at vesting rather than distribution.

Federal Defense of Marriage Act of 1996 defines "spouse" as a person of the opposite sex; this bill aligns ERS with that federal definition to maintain tax compliance.

Civil union partners retain all spousal rights under Hawaii Revised Statutes chapter 88 that are not governed by the Internal Revenue Code.

The Board of Trustees of the Employees' Retirement System supported this measure; the Committee on Judiciary and Labor recommends passage and referral to the Committee on Ways and Means.