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Bill

Bill

HB 847

RELATING TO HAWAII RETIREMENT SAVINGS ACT.

2025 Regular Session Introduced by Cory Chun and 17 co-sponsors

Hawaii creates state-facilitated retirement savings program enabling automatic payroll contributions for private workers lacking employer retirement plans.

Reported from LAB (Stand. Com. Rep. No. 479) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
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Bill Summary · HB 847

Legislative bill overview

HB 847 establishes the Hawaii Retirement Savings Act, creating a state-facilitated retirement savings program for private sector workers without access to employer-sponsored retirement plans. The bill aims to increase retirement security by allowing employees to automatically contribute to individual retirement accounts through payroll deductions, with employers acting as facilitators rather than plan sponsors.

Why is this important

Approximately 40% of Hawaiian private sector workers lack access to workplace retirement plans, putting them at risk of inadequate retirement savings. This program addresses a real gap in retirement security infrastructure while reducing the burden on employers by making them non-liable plan sponsors, potentially increasing retirement readiness across the state's workforce.

Potential points of contention

  • Employer burden concerns: Despite non-liability protections, employers must still facilitate payroll deductions and employee enrollment processes, which could create administrative costs and compliance requirements for small businesses
  • Program funding and viability: Questions about how the state will fund program administration, manage investment options, and ensure sufficient participation rates to sustain the program financially
  • Regulatory scope: Unclear whether state oversight of retirement accounts duplicates federal regulatory frameworks or creates conflicting requirements for employers operating across state lines

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

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