S.B. 3289 Summary

• Establishes the Hawaii Retirement Savings Program, a state-facilitated payroll-deduction individual retirement account (IRA) system for private-sector employees without access to employer-sponsored retirement plans.

• Creates a 9-member Hawaii Retirement Savings Board (2 ex officio voting members, 2 ex officio nonvoting legislative members, and 5 appointed voting members) to implement and administer the program through the Department of Labor and Industrial Relations.

• Sets default employee contribution at 5% of wages (with flexibility to contribute higher or lower amounts) through payroll deduction into Roth IRAs, with employers bearing no responsibility for investment performance or benefits.

• Authorizes state matching contributions of up to $500 per participant account for the first 50,000 covered employees who participate for twelve consecutive months after initial enrollment.

• Appropriates $1,255,000 for fiscal year 2022-2023 for program administration, $1,000,000 for outreach and education, and $25,000,000 to the special fund for matching contributions.