General Provisions

CHAPTER 41

GENERAL PROVISIONS

§14-41-1 Purpose §14-41-2 Definitions §14-41-3 Office of the board §14-41-4 Appearances before the board §14-41-5 Government records and information

§14-41-1 Purpose. Chapter 88E, Hawaii Revised Statutes, authorizes the board of trustees of the State of Hawaii deferred compensation plan to establish the State of Hawaii deferred compensation plan. Chapters 41 to 44 of Title 14, Administrative Rules, are adopted by the board to implement administration of the plan. [Eff 5/12/83; comp '2~ ] (Auth: HRS §88E-3) (Imp: HRS §§88E-2, 88E-3)

§14-41-2 Definitions. As used in this chapter: "Administrator" means the company or persons engaged by the board to administer and maintain the plan under the direction of the board. "Amounts deferred" means a portion of compensation withheld that is deferred or contributed into the plan, as either a pre-tax or a Roth

41-1

. f ,516

§14-41-2

cbntribution, subject to the limits prescribed under the Code. "Beneficiary" means a person designated by a participant, a participant's estate, or any person, whose rights under the plan are derived as a result of the participant's death. "Board" means the board of trustees of the State of Hawaii deferred compensation plan created pursuant to section 88E-3, Hawaii Revised Statutes. "CARES Act" means the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended. "Code" means the United States Internal Revenue Code, as amended. "Designated Roth account" means a Roth 457(b) account and is a separate account established within a participant's plan account that holds the designated Roth contributions made by the participant. "Designated Roth contribution" is a type of elective deferral, unless specifically stated otherwise, that a participant designates as an irrevocable Roth contribution which is included in gross income and deposited into a designated Roth account within the same plan. The deferral is treated as an elective deferral subject to the combined maximum annual deferral limits for normal deferrals, age-based deferrals, or traditional catch-up deferrals. "Direct rollover" or trustee-to-trustee transfer means a direct transfer of assets out of the plan to another eligible, qualified plan or an individual retirement account, and is not includible in the gross income of a participant or designated beneficiaryr pursuant to a permissible distributable event under the Code. "Employee" means any person who is eligible to participate in the employees' retirement system of the State of Hawaii as defined in section 88-21, Hawaii Revised Statutes. "Employer" means the State of Hawaii or any county of the State of Hawaii which enters into an agreement with the State of Hawaii to extend the plan to the employees of the county.

41-2

§14-41-2

"HEART Act" means the Heroes Earnings Assistance and Relief Tax Act of 2008, as amended. "Includible compensation" means compensation which is ineluctable in gross income for federal and state tax purposes, taking into account the provisions of, and adjustments specified in, section 457 of the Code. "In-plan Roth rollover" is an eligible distribution from the participant's plan acco~nt, other than a designated Roth account, that is directly rolled over to the participant's designated Roth account within the same plan. "Participant" means an employee who enters into a written agreement with the respective employer to defer compensation under the plan. "Participant account" means the accounts and subaccounts established on behalf of a participant or beneficiary within the plan, as applicable, for 457(b) contributions, rollover contributions, in-plan rollovers, and for all other rollover sources. "Participation agreement" means the written agreement between fP employee and employer to have compensation withhe~ d each pay period and invested by the board. "Plan" means the State of Hawaii deferred compensation plan established in accordance with chapter 88E, Hawaii Revised Statutes, and section 457 of the Internal Revenue Code, 26 U.S.C. §457. "Pre-tax contribution" means a participant's elective deferral that is not includible in the participant's gross income at the time of the deferral. "Qualified distribution" is a distribution made after a five-taxable-year ,Seriod of participation and is either: 1) made on or after the date the participant attains 59 1/2 years; 2) made after a participant's death; or 3) attributable to the participant being disabled. "Roth contribution" means a participant's elective Roth 457(b) deferral that is includible in the participant's gross income at the time of the deferral and has been irrevocably designated as a Roth contribution by the participant.

41-3

§14-41-2

"Severance from employment" means the date that an employee has terminated employment with the State or participating county. "Unforeseeable emergency" means severe financial hardship to a participant resulting from a sudden arid unexpected illness or accident of the participant or of the participant's dependent, as defined in section 152(a) of the Internal Revenue Code, loss of the participant's property due to casualty, or similar extraordinary and unforeseeable circumstances beyond the _p_articipant' s control. [Eff 5/12/83; am and comp OCT - 7 2023 ] (Auth: HRS §88E-3) (Imp: HRS §§88E-l to 88E-3)

§14-41-3 Office of the board. (a) The office of the board is located at 235 South Beretania Street, 14 th floor, Honolulu, Hawaii 96813. (b) The office of the board shall be open from 7:45 a.m. to 4:30 p.m. of each weekday unless otherwise provided by statute or executive order. [Eff 5/12/83; am and comp OCT -7 311 ] (Auth: HRS §88E-3) (Imp: HRS §§80-1, 88E-3)

§14-41-4 Appearances before the board. A party to a proceeding before the board may appear in person or may be represented by or with counsel or other person chosen as a representative. The board at any time may require evidence of authority and qualification to act in a r~ resentative capacity. [Eff 5/12/83; comp OCT -7 all ] (Auth: HRS §88E- 3) (Imp: HRS §88E-3)

§14-41-5 Government records and information. (a) The term "government record," as used in this chapter, shall be as defined in section 92F-3, Hawaii Revised Statutes.

41-4

§14-41-5

(b) All government records shall be available for inspection in the office of the board during established office hours, in accordance with chapter 92F, Hawaii Revised Statutes. (c) Government records printed or reproduced by the board shall be made available to any person with the cost of printing or reproducing a government record as specified in section 92-21, Hawaii Revised Statutes. [Eff 5/12/83; am and comp OCT -7 aJiB J (Auth: HRS §88E-3) (Imp: HRS §§91-2, 92-21, 92F)

41-5

.,,;_1.,f" h\ ·.~•~• !0(:

§14-42-2

HAWAII ADMINISTRATIVE RULES

TITLE 14

DEPARTMENT OF HUMAN RESOURCES DEVELOPMENT

SUBTITLE 4

STATE OF HAWAII DEFERRED COMPENSATION PLAN