HONOLULU (AP) — The Hawaii Senate on Tuesday rejected a proposal to begin taxing pension income, greatly diminishing its chances of becoming law.

Senators said they were swayed by widespread opposition from senior citizens and an opinion from the state attorney general's office that the change would likely be challenged in court.

"What you're going to hear is a collective sigh of relief across the state from seniors," said Barbara Kim Stanton, state director for AARP. "Seniors understand the concept of a fair share, but there are a lot of things they would like to see done before they resort to a tax on pensions."

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.