Bill > HB847

This bill modifies the Hawaii Retirement Savings Act to enhance and clarify the state's retirement savings program for private sector employees without employer-sponsored retirement plans. The bill changes the definition of "covered employer" to include any business in Hawaii with employees, excluding government entities and employers who have already offered retirement plans in the past two years. A key provision is the shift from voluntary to automatic enrollment, meaning employers will now automatically enroll their employees in the program unless the employee chooses to opt out. The bill removes the previous limit on annual program fees and expenses, allowing more flexibility in program management. It expands the board's powers to develop and implement the program, including creating investment policies, establishing fees, and developing outreach strategies. The legislation also introduces penalties for employers who fail to enroll eligible employees, with fines of $25 per month for non-enrollment. Additionally, the bill appropriates funds to the Department of Labor and Industrial Relations for the program's development and operations, and establishes that the program will create Roth IRAs for enrolled employees, with a potential option to contribute to traditional IRAs in the future.

Budget and Finance, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=847&year=2026