Bill > SB1455

This bill clarifies and modifies the Hawaii Retirement Savings Act to require automatic enrollment of employees in a state-facilitated retirement savings program, with the ability to opt out. The bill expands the definition of "covered employer" to include any business in Hawaii with employees, while excluding government entities and businesses that have already offered certain tax-qualified retirement plans. Under the new provisions, covered employers must automatically enroll their employees in a Roth individual retirement account (IRA) program, withholding contributions from employees' paychecks unless an employee specifically chooses not to participate. The bill establishes penalties for employers who fail to enroll eligible employees, including monetary penalties of $25 per month for each unenrolled employee. The program aims to provide a retirement savings option for private sector employees who do not currently have access to employer-sponsored retirement plans, with the board responsible for designing and managing the program to maximize participation, simplicity, and cost-effectiveness while ensuring compliance with applicable laws.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1455&year=2026