§88-127  Guaranty.  Regular interestcharges payable, the creation and maintenance of reserves in the pensionaccumulation fund and the maintenance of annuity reserves and pension reservesas provided for the payment of all pensions, annuities, retirement allowances,refunds, and other benefits granted under this part, and all expenses inconnection with the administration and operation of the system are madeobligations of the State and of the respective counties.  All income, interest,and dividends derived from deposits and investments authorized by this partshall be used for the payment of such obligations.  After June 30, 1964, theincome shall include capital gains or losses, whether realized or unrealized,in the value of the retirement system assets as taken from time to timethereafter by the board of trustees.  It is hereby declared that any and allsums contributed or paid from whatever source to the system for the fundscreated by this part, and all funds of the system including any and all interestand earnings of the same, are and shall be held in trust by the board for theexclusive use and benefit of the system and for the members of the system andshall not be subject to appropriation for any other purpose whatsoever. [L1925, 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 ofretirement system funds.  Att. Gen. Op. 62-22.

 

Case Notes

 

  Employees' retirement system (ERS) board of trustee'scontention that no statute in chapter 88 provides that ERS owes a duty toindividual members to provide individual notice and counseling, particularlyabsent a request for information was incorrect where, reading §88-27 and thissection in para materia, the ERS board is charged with the duty to diligentlyand honestly administer all funds held in trust for the exclusive use andbenefit of the system and for the members of the system.  108 H. 338, 120 P.3d237.