SB 2553 Summary

• Clarifies "covered employer" definition to include any person in business in Hawaii with one or more employees, excluding the U.S. government, state/political subdivisions, and employers that have offered or maintained tax-qualified retirement plans in the preceding two years.

• Changes Hawaii Retirement Savings Program from opt-in to automatic enrollment, requiring covered employers to enroll covered employees unless the employee elects to opt out.

• Establishes Roth IRA as default account type for enrolled employees, with option for participants to affirmatively elect traditional IRA instead of or in addition to Roth IRA.

• Imposes penalties on covered employers failing to enroll covered employees: $25 per month for non-enrollment, increasing to $50 per month after initial penalty assessment.

• Repeals and lapses the $25,000,000 appropriation from Act 296, Session Laws of Hawaii 2022 that provided matching contributions for the first 50,000 participating employees.