SB1360 Summary

• Amends Hawaii Revised Statutes Chapter 88 to conform the Employees' Retirement System to updated Internal Revenue Code requirements regarding automatic disbursements and required minimum distributions under the SECURE 2.0 Act of 2022.

• Modifies Section 88-74.7 to reference the IRC definition of "required beginning date" rather than defining it as April 1 of the calendar year following the calendar year in which a member terminates service or attains age 70½, whichever is later.

• Requires automatic payment of accumulated contributions or retirement benefits to members by their required beginning date, even if the member has not applied for payment or filed a retirement application.

• Updates Section 88-321 to change the age limitation for withdrawing accumulated contributions from age 62 to compliance with Sections 88-22.5 and 88-74.7 (required beginning date rules).

• Updates Section 88-341 to replace the age 62 distribution requirement with automatic return of accumulated contributions pursuant to required beginning date rules under Sections 88-22.5 and 88-74.7.