AI-assisted research summary: The State and counties must fund specified pension-system costs, investment income must be used to pay those obligations, and system funds must be held in trust by the board for the system and its members.
Regular interest charges payable, the creation and maintenance of reserves in the pension accumulation fund and the maintenance of annuity reserves and pension reserves as provided for the payment of all pensions, annuities, retirement allowances, refunds, and other benefits granted under this part, and all expenses in connection with the administration and operation of the system are made obligations of the State and of the respective counties. All income, interest, and dividends derived from deposits and investments authorized by this part shall be used for the payment of such obligations. After June 30, 1964, the income shall include capital gains or losses, whether realized or unrealized, in the value of the retirement system assets as taken from time to time thereafter by the board of trustees. It is hereby declared that any and all sums contributed or paid from whatever source to the system for the funds created by this part, and all funds of the system including any and all interest and earnings of the same, are and shall be held in trust by the board for the exclusive use and benefit of the system and for the members of the system and shall not be subject to appropriation for any other purpose whatsoever. [L 1925, c 55, §11; am L 1933, c 181, §2; am L Sp 1933, c 10, §5; RL 1935, §7929; am L 1935, c 48, §§2, 5; RL 1945, §714; RL 1955, §6-103; am L 1965, c 222, §17; HRS §88-118; am L 1969, c 110, pt of §1; am L 2004, c 181, §7] Attorney General Opinions Trustees may not waive penalty for prepayment of loan of retirement system funds. Att. Gen. Op. 62-22. Case Notes Employees' retirement system (ERS) board of trustees' contention that no statute in chapter 88 provides that ERS owes a duty to individual members to provide individual notice and counseling, particularly absent a request for information was incorrect where, reading §88-27 and this section in para materia, the ERS board is charged with the duty to diligently and honestly administer all funds held in trust for the exclusive use and benefit of the system and for the members of the system. 108 H. 338, 120 P.3d 237.