§88-127  Guaranty.  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 trustee's
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.