STAND. COM. REP. NO. 3008

Honolulu, Hawaii

RE: S.B. No. 2553

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, 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 and intent of this measure is to promote retirement savings for employees in the private sector.

Specifically, this measure:

(1) Requires covered employers to automatically enroll their covered employees into the Hawaii Retirement Savings Program unless the employee opts out of enrollment; and

(2) Clarifies the definition of "covered employer" under the Hawaii Retirement Savings Act.

Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations, Executive Office on Aging, AARP Hawaii, Hawaii Family Caregiver Coalition, Hawaii Primary Care Association, and eleven individuals.

Your Committee received written comments on this measure from the Retail Merchants of Hawaii and Maui Chamber of Commerce.

Your Committee finds that establishing automatic enrollment in the Hawaii Retirement Savings Program will increase participation, align Hawaii's law with laws of other states requiring automatic enrollment in similar savings programs, and greatly increase the viability of the program by ensuring a sufficient number of participants.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2553, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair