STAND. COM. REP. NO. 1165-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2553

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred S.B. No. 2553, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HAWAII RETIREMENT SAVINGS ACT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Clarify the definition of "covered employer" in the Hawaii Retirement Savings Act; and

(2) Amend and align provisions of the Hawaii Retirement Savings Program to require automatic enrollment unless the employee opts out.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Hawaiʻi Retirement Savings Board; Executive Office on Aging; AARP Hawaiʻi; and seven individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Retail Merchants of Hawaii.

Your Committee finds that many individuals do not have access to an employer-sponsored retirement plan and are at significant risk of not having enough retirement income to meet basic expenses during retirement. Providing private sector employees with access to employer-sponsored retirement plans, unless they opt out, is a reliable way to improve employees' financial security and promote savings needed for a secure retirement.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2553, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2553, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair