HB 847 Hawaii House · 2025 Regular Session

RELATING TO HAWAII RETIREMENT SAVINGS ACT.

Summary

Clarifies the definition of "covered employer" under the Hawaii Retirement Savings Act. Requires covered employers to automatically enroll covered employees into the Hawaii Retirement Savings Program unless the employee chooses to opt out. Repeals the limit on the total fees and expenses that can be spent for the Program each year. Appropriates funds to the Department of Labor and Industrial Relations for the development and operation of the Program. Effective 7/1/3000. (HD1)

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 12, 2025

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What changed between versions

HB847 → HB847_HD1 · 7 edits

MODERATE

This bill amends Hawaii's retirement savings program to require automatic enrollment for private sector employees who lack access to employer-sponsored plans, shifting from an opt-in to an opt-out system. It clarifies which employers are covered, removes annual spending limits on program fees, and appropriates state funds to support program development. The changes aim to increase retirement savings participation among workers who previously had no easy way to save for retirement.

Scope change

The bill expands automatic enrollment requirements to all private sector employers without existing retirement plans, while maintaining exemptions for federal/state employers and those already offering qualified retirement plans.

DEFINITION

Clarified the definition of 'covered employer' to include any person in business with employees, while explicitly excluding the federal government, state government, and employers maintaining qualified retirement plans.

REQUIREMENT

Changed enrollment from voluntary opt-in to mandatory automatic enrollment with opt-out option, requiring employers to withhold contributions unless employees decline.

Repealed the annual limit on total fees and expenses that can be spent for the program, allowing more flexibility in program administration.

Added requirement for employers to provide written notice of employees' right to opt out before automatic enrollment takes effect.

Changed default account type to Roth IRA, with option for employees to elect traditional IRA contributions instead.

FISCAL

Appropriated state funds for fiscal years 2025-2026 and 2026-2027 to cover program development, operations, legal services, outreach, and marketing.

ENFORCEMENT

Established penalties for non-compliance including reimbursement to employees for missed contributions plus 6% annual interest, plus monthly penalties of $25 initially increasing to $50.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 12, 2025

Committee

Reported from LAB (Stand. Com. Rep. No. 479) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 6, 2025

Lower · Passed

The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Sayama, Lee, M., Kapela, Kong, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Garrett.

lower

Jan 23, 2025

Committee

Referred to LAB, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

18 primary · 0 co-sponsors