HB 1136 Summary

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

• Requires covered employers to automatically enroll covered employees into the Hawaii Retirement Savings Program unless employees elect to opt out, changing from previous voluntary opt-in enrollment.

• Mandates covered employers withhold payroll deduction contributions from enrolled employees and transmit contributions to the program by the 15th day of the following month.

• Establishes a Roth individual retirement account as the default account type, with optional ability for participants to affirmatively elect traditional individual retirement accounts instead or in addition.

• Imposes penalties on employers failing to enroll employees: $25 per month of non-enrollment and $50 per month of continued non-enrollment after penalty assessment, plus interest at 6% annually on contributions that should have been made.