'Hawaiian Electric Industries employees should treat the first spouse’s death as a bracket stress test—model RMDs early, pace Roth conversions, engage both partners, and coordinate with tax and legal professionals before surprises hit.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
'For Hawaiian Electric Industries employees, charting how assets shift to a surviving spouse can reduce unexpected surprises. Talking to qualified tax and estate advisors can help.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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The horizontal transfer of wealth between spouses and its growing impact on estate planning for Hawaiian Electric Industries families.
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The tax implications of Required Minimum Distributions (RMDs) and strategic Roth conversions to manage income brackets and help preserve assets.
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The evolving role of charitable giving and spousal financial engagement in shaping effective multi-generational legacy plans.
Major wealth transfers are anticipated over the coming decades. By 2045, more than $84 trillion is expected to change hands—$11.9 trillion to charities and $72.6 trillion to heirs and family members 1 —and many of those dollars will first move “across” to surviving spouses rather than straight “down” to children.
Because women often live longer than men, a sizable share of assets may shift laterally to widows before any vertical bequests occur, a point stressed by Wealth Enhancement senior wealth advisor Mike Corgiat. This is important for Hawaiian Electric Industries retirees with sizable IRAs to note.
Pre-boomer generations are projected to pass $15.8 trillion in the next decade, while baby boomers may transfer nearly $53 trillion 1 —frequently after the first spouse dies—illustrating how wealth rarely travels in a clean vertical line.
This horizontal detour has real implications for required minimum distributions (RMDs), retirement savings, and estate tax exposure that can affect Hawaiian Electric Industries employees late in retirement.
Current rules require RMDs to begin at age 73 for those born 1951–1959 and at 75 for those born in 1960 or later, and a surviving spouse can often roll an inherited IRA into their own to delay distributions—sometimes compressing taxable income into fewer years.
Brent Wolf, a retirement income planner with Wealth Enhancement, notes that once RMDs start and the survivor files as single, identical withdrawals can land in higher brackets—an issue that can surprise a survivor when income sources are already shifting.
Strategic Roth conversions while both spouses are alive—often in the 60s or early 70s—may help trim future RMDs and give the survivor more control, a tactic many Hawaiian Electric Industries retirees may want to evaluate while they still benefit from joint tax brackets.
Corgiat emphasizes that conversions executed at comparatively lower rates can lessen the tax hit on both the survivor and heirs, while Wolf adds that thoughtful timing lowers the odds of large, forced taxable withdrawals later—key considerations for Hawaiian Electric Industries employees eyeing estate efficiency.
Philanthropy is shifting too, as more affluent families embrace “living legacy” giving so they can witness impact, but a sudden asset windfall can delay or confuse charitable intent if the less-involved spouse isn’t already engaged in the broader plan.
Wolf recommends that spouses who haven’t driven the finances start participating early, since many women may ultimately steer multimillion-dollar portfolios and will benefit from hands-on experience before the transfer moment arrives.
Coordinated planning across tax, investment, and estate disciplines can answer pivotal questions for Hawaiian Electric Industries retirees: How large might RMDs become with only one personal exemption? Would spreading Roth conversions over several years keep income in more favorable brackets? Are beneficiary designations current on retirement plans and insurance? Do charitable goals call for donor-advised funds, qualified charitable distributions (QCDs) from IRAs, or a family foundation? Has the estate been reviewed for credit shelter or portability strategies and potential federal or state estate taxes?
The death of the first spouse often triggers the most dramatic ownership and tax changes, so acting earlier—stress-testing single-life cash flows, harvesting gains or losses, accelerating withdrawals in low-income years, and reviewing insurance and titling—can materially influence outcomes for Hawaiian Electric Industries retirees.
Those headline numbers—$84.4 trillion overall, $72.6 trillion to heirs, $11.9 trillion to charities—signal the size of what’s coming, but the net amount that actually arrives depends on how transfers occur and which tax rules apply, especially for families with layered benefits and investments.
As this horizontal phase of wealth transfer approaches, Hawaiian Electric Industries employees may benefit by preparing actively to pass the baton to a suriving spouse.
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Analogy: Picture a family’s wealth as a relay baton on an L-shaped track headed toward a $84.4 trillion finish line—$72.6 trillion earmarked for heirs and $11.9 trillion for charity—and the baton must first take a sideways turn between spouses, a reality many Hawaiian Electric Industries couples will face before assets sprint down the straightaway to children and philanthropy.
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Sources:
1. Cerulli Associates. “ Cerulli Anticipates $84 Trillion in Wealth Transfers Through 2045 .' 20 Jan. 2022.
2. MassMutual. “ The horizontal wealth transfer: Redefining women’s wealth ,” by Shelley Gigante, 10 Mar. 2025.
3. MarketWatch. “ When a spouse dies, there can be a ‘tax explosion’ for the one left behind ,” by Beth Pinsker, 18 Jan. 2025.
How does the recent benefit rate increase effective August 1, 2020, impact the overall retirement benefits for employees of the Hotel Union & Hotel Industry of Hawaii? Employees need to understand how the increase from $34.92 to $35.92 per year of credited service translates into their calculated pension benefits, particularly those nearing retirement. Discussion on how these changes affect both current employees and potential retirees is crucial for informed decision-making regarding retirement timing and financial planning.
The recent benefit rate increase from $34.92 to $35.92 per year of credited service increases the maximum monthly retirement benefit to $1,257.20 for employees with 35 years of service. This change, effective August 1, 2020, means that employees retiring after that date will benefit from higher monthly pension payments. Those nearing retirement should factor in this increase when calculating their pension benefits, as it can significantly improve their financial security in retirement(Hotel Union Hotel Indu…).
What should employees of the Hotel Union & Hotel Industry of Hawaii consider when applying for pension benefits under the new amendments to the plan? It is essential for employees to recognize what benefits may apply to them based on their work history and service years. A thorough understanding of how the amended plan provisions relate to their individual circumstances will enable them to make more beneficial choices regarding their retirement options.
Employees must consider how their years of service and the recent amendments, like the benefit rate increase, apply to their personal circumstances. Delaying retirement past August 1, 2020, may lead to higher pension payments. It’s crucial to consult the Trust Fund Office to understand how these changes affect individual benefit calculations and make informed retirement decisions based on their work history(Hotel Union Hotel Indu…).
In what ways do the new rules regarding the Required Minimum Distribution (RMD) affect employees of the Hotel Union & Hotel Industry of Hawaii? Employees must grasp the nuances of the new RMD timeline, particularly how it has shifted from age 70-1/2 to 72, impacting their pension benefit distribution strategies. This updated rule introduces significant planning considerations for those continuing to work past age 70-1/2, including necessary adjustments to retirement timelines and financial sustainability.
The new RMD rules, effective January 1, 2020, have increased the age for required pension distributions from 70½ to 72. This change allows employees to delay their pension payouts until they reach age 72 or terminate employment, whichever comes later. Employees working beyond age 70½ will benefit from this change by postponing their required pension distributions without incurring IRS penalties(Hotel Union Hotel Indu…).
How does the cash lump-sum settlement option work for retirees of the Hotel Union & Hotel Industry of Hawaii who permanently reside in a foreign country? Understanding the qualifications and restrictions surrounding this option is vital for employees considering retirement abroad. Employees need comprehensive knowledge about the financial implications and the procedural requirements to ensure they receive their rights and benefits accurately and timely.
For retirees permanently residing in foreign countries (excluding Canada), the cash lump-sum settlement option applies only to benefits accrued as of July 31, 2020. Any benefits earned after that date must be paid as a monthly annuity. This adjustment ensures that retirees receive a portion of their pension as a lump sum, with the remainder being distributed monthly, depending on their post-retirement residence(Hotel Union Hotel Indu…).
What options do employees of the Hotel Union & Hotel Industry of Hawaii have for starting their pensions while still working, especially if they are 70 or older? Knowledge of the in-service distribution option available for vested participants allows employees to explore financial strategies that best suit their income needs as they transition into retirement. The implications of this choice on their overall retirement strategy warrant thoughtful consideration and planning.
Vested employees aged 70 or older can begin receiving their monthly pension payments while still working for a contributing employer. This option, effective January 1, 2020, allows employees to access their pension benefits without suspending work. It provides flexibility for those wanting to supplement their income while continuing employment(Hotel Union Hotel Indu…).
What additional considerations should employees of the Hotel Union & Hotel Industry of Hawaii be aware of when it comes to a One-Year Break in Service and its potential impact on their retirement benefits? Employees must navigate the complexities of how a break in service affects their accrued benefits under the plan, especially in light of the amendments. Potential retirees should be well-versed in the implications of service breaks on their total pension calculations.
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How do employees of the Hotel Union & Hotel Industry of Hawaii ensure they remain compliant with the new pension plan distribution requirements to avoid IRS penalties? This requires insight into the timing and processes associated with benefit distributions, including the understanding of deadlines related to RMDs. Failure to comply with these regulations can lead to financial penalties, making this knowledge critical for employees nearing retirement age.
Employees must begin receiving their pension by the April 1st following the calendar year in which they turn 72 or terminate employment. Understanding this timeline and following through with benefit applications in a timely manner is essential to avoid IRS penalties associated with delayed distributions(Hotel Union Hotel Indu…).
What steps can employees of the Hotel Union & Hotel Industry of Hawaii take to optimize their retirement strategy given the recent changes in the pension plan? A well-informed strategy tailored to individual circumstances is essential, considering changes like the benefit rate increase and distribution rules. Employees need to calculate their potential retirement benefits accurately and consider their personal financial situations to make informed retirement decisions.
Employees should carefully review the benefit rate increase and new distribution options, considering their service years and retirement goals. Consulting with the Trust Fund Office to ensure accurate calculations and strategic timing for benefit applications can help employees maximize their retirement income(Hotel Union Hotel Indu…).
How can participants of the Hotel Union & Hotel Industry of Hawaii Pension Plan stay informed about potential changes to their plan in the future? Ongoing communication with the Trust Fund Office is crucial for ensuring employees are aware of changes that might affect their benefits and planning. Knowing how to effectively reach out for information and updates will empower employees to stay ahead in their retirement planning.
Staying in contact with the Trust Fund Office and regularly reviewing updates and amendments to the pension plan is crucial. Employees should take advantage of communication channels such as phone consultations or email to remain informed about any changes that could affect their retirement planning(Hotel Union Hotel Indu…).
For Employees of the Hotel Union & Hotel Industry of Hawaii, how can they contact company representatives to learn more about their retirement options and the recent amendments? Understanding the best practices for reaching out to the Trust Fund Office for assistance reflects the company’s commitment to supporting employees during their retirement planning process. Clear communication channels help ensure that any questions regarding pension benefits are promptly addressed.
Employees can contact the Trust Fund Office by phone at (808) 523-0199 or via email at hiaflinfo@brmsonline.com during business hours. Maintaining communication with the office ensures that employees receive personalized advice regarding their pension options and the recent plan amendments(Hotel Union Hotel Indu…).
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