IRS Renders Opinion on ERS Lawsuit
March 14, 2017
Late this afternoon, HGEA was informed that the Employees' Retirement System (ERS) received an opinion from the Internal Revenue Service (IRS) that the current version of Act 1 is improper per IRS rules because it offers a choice between an early retirement option and a severance pay out. The intent of Act 1 is to provide certain Hawaii Health System Corporation Maui Region employees with fair options due to the termination of their State service through privatization.
As noted in an eBulletin sent earlier today (see below), HGEA has vehicle bills moving through the legislature to address these issues. Our goal is to work with Gov. David Ige and legislators to reach an acceptable solution that will help our members.