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GM 1213

Informing the Legislature that on May 29, 2025, the Governor signed the following bill into law: SB855 SD1 HD1 CD1 (ACT 113).

2025 Regular Session

Act 113 mandates automatic enrollment in retirement savings for Hawaii's private sector employees without plans, enhancing access and flexibility for better savings.

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Bill Summary · GM 1213

Summary of GM 1213 - Informing the Legislature of Act 113

Bill Information:
- Bill Number: GM 1213
- Title: Informing the Legislature that on May 29, 2025, the Governor signed the following bill into law: SB855 SD1 HD1 CD1 (ACT 113).
- Status: Received
- Introduced: May 29, 2025
- Classification: Proclamation
- Subject: Act 113

Purpose and Intent

The primary purpose of GM 1213 is to inform the legislature that the Governor of Hawaii, Josh Green, M.D., has signed into law Senate Bill 855, which is now designated as Act 113. This act aims to enhance the Hawaii Retirement Savings Act by making significant amendments to improve retirement savings options for private sector employees in Hawaii.

Key Provisions of Act 113

  1. Clarification of "Covered Employer":

    • The definition of "covered employer" is revised to include any business entity that employs individuals in Hawaii, excluding the federal government, state government, and employers who have maintained a tax-qualified retirement plan in the past two years.

  2. Automatic Enrollment Requirement:

    • The act mandates automatic enrollment in the state-facilitated payroll-deduction retirement savings plan for employees who do not have access to employer-sponsored retirement plans, unless they choose to opt out.

  3. Removal of Fee Limitations:

    • The previous cap on the total fees and expenses that could be incurred for administering the retirement savings program has been repealed, allowing for more flexibility in program management.

  4. Powers and Duties of the Board:

    • The act outlines the responsibilities of the board overseeing the retirement savings program, including establishing and maintaining the program, ensuring compliance with laws, and developing outreach plans to educate employees about retirement savings.

Impact of Act 113

  • Employees: The act primarily benefits private sector employees in Hawaii who lack access to employer-sponsored retirement plans by facilitating easier access to retirement savings through automatic enrollment.
  • Employers: Employers will need to comply with the new automatic enrollment requirement, which may involve administrative adjustments to their payroll systems.
  • Retirement Savings Landscape: By clarifying definitions and removing fee limitations, the act aims to create a more robust and accessible retirement savings framework in Hawaii.

Procedural Aspects

  • The bill was signed into law by the Governor on May 29, 2025, and is now officially recognized as Act 113. The legislative action signifies a commitment to improving retirement savings options for Hawaii's workforce.

This summary provides an overview of GM 1213 and its implications for retirement savings in Hawaii, highlighting the key changes introduced by Act 113.

Compiled from official sources — confirm details with the bill’s official record.

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