CONFERENCE COMMITTEE REP. NO. 144

Honolulu, Hawaii

, 2025

RE: S.B. No. 855

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 855, S.D. 1, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

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

(2) Require covered employers to automatically enroll covered employees into the Hawaii Retirement Savings Program unless the employee opts out;

(3) Repeal the limit on the total fees and expenses that can be spent for the Program each year; and

(4) Appropriate funds to the Department of Labor and Industrial Relations for the development and operation of the Program.

Your Committee on Conference finds that the Hawaii Retirement Savings Program will offer a critical retirement planning option to many private-sector employees in the State. Your Committee on Conference further finds, however, that the Program's use of an opt-in enrollment model will hinder its ability to accumulate a critical mass of participants, risk its long-term viability, and limit the potential for the State to enter into cost-cutting interstate compact agreements. Therefore, this measure implements an automatic enrollment model to align the Program with best practices in the retirement savings industry and provide for the long-term financial security of private sector employees.

Your Committee on Conference has amended this measure by:

(1) Deleting language that would have appropriated funds to the Department of Labor and Industrial Relations for the development and operation of the Hawaii Retirement Savings Program;

(2) Amending section 1 to reflect its amended purpose; and

(3) Changing its effective date to July 1, 2025.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 855, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 855, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ HENRY J.C. AQUINO Chair
____________________________ MIKE LEE Co-Chair	____________________________ LORRAINE R. INOUYE Co-Chair