Bill > HB1136

This bill clarifies and modifies the Hawaii Retirement Savings Act by changing the definition of "covered employer" and implementing an automatic enrollment system for employees in the state-facilitated retirement savings program. The bill expands the definition of "covered employer" to include businesses that have offered or maintained a retirement plan in the past two years, and mandates that employers automatically enroll their employees in the retirement savings program unless the employees choose to opt out. Under the new provisions, covered employers must withhold payroll deduction contributions from employees' paychecks and transmit those contributions to the program by the 15th day of the following month. The bill establishes that the program will create a Roth individual retirement account (IRA) for each enrolled employee, with the possibility of adding a traditional IRA option. Employers who fail to enroll employees in the program will be subject to penalties, including a $25 monthly fine for each unenrolled employee and potential liability for missed contributions with interest. The primary goal is to increase retirement savings opportunities for private sector employees in Hawaii who do not currently have access to employer-sponsored retirement plans, making participation easier and more streamlined through automatic enrollment.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1136&year=2026