HI HB2046

Establishes the Hawaii Retirement Savings Program, a state-facilitated payroll-deduction retirement savings plan for private sector employees without access to employer-sponsored retirement plans, beginning July 1, 2024.

Creates a Hawaii Retirement Savings Board with nine members (two co-chair state officials, two legislative observers, and five appointed board members) to administer the program in consultation with the Department of Budget and Finance and Department of Labor and Industrial Relations.

Requires covered employers with one or more employees to automatically enroll covered employees in Roth IRAs with a default 5% payroll deduction contribution, with opt-out rights, with contributions transmitted by the 15th day of the following month.

Establishes a Hawaii Retirement Savings Special Fund to receive appropriations, fees, grants, and donations; program manager must keep total annual fees and expenses below 75 basis points of total program assets (excluding initial three-year period).

Imposes penalties on covered employers for failing to enroll employees ($25-$50 monthly), requiring contribution of missed amounts with 6% annual interest, and creates civil action rights for the director and affected employees; appropriates $813,600 for fiscal year 2022-2023.