Hawaii Retirement Savings Act

Hawaii Retirement Savings Act

Hawaii joins a growing list of states to enact a state-facilitated retirement savings program for private-sector employees who do not have access to employer-sponsored retirement plans.

A covered employer is one who has been in business in the state for more than two years and has one or more employees. Covered employer does not include the state, federal government, or a person who has maintained a tax-qualified retirement plan for its employees in the preceding two years.

A covered employee means an individual who is a resident of the State, is 18 years of age or older, and receives wages from a covered employer. Covered employee does not include an individual covered under the federal Railway Labor Act or on whose behalf of the employer makes contributions to the Taft-Hartley multiemployer pension fund.

The law establishes a retirement savings board to implement and administer a payroll-deduction retirement savings program. The Governor and others shall appoint members to the retirement savings board no later than sixty days after enactment of this Act, for terms of office beginning in October 2022.

Beginning July 1, 2024, a covered employer shall:

  • Automatically enroll his/her employees in the program and provide notice to employee explaining the right to opt out,
  • Withhold the covered employee’s contribution amount, and
  • Transmit the contribution to the program on behalf of its employees no later than the 15th day of the calendar month following the month in which the contribution was withheld.

The default contribution amount shall be equal to 5% of the covered employee’s salary or wages unless the covered employee elects a higher or lower amount. A covered employer shall not make contributions to the program.

A covered employer may be subject to penalties for failure to enroll a covered employee or failure to submit the contributions.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

Hawaii Retirement Savings Acthttps://www.cbiz.com/Portals/0/Images/Retirement Plan Fees.jpg?ver=1RAlEZF4K5NX9NUkfbVXFw%3d%3dHawaii joins a growing list of states to enact a state-facilitated retirement savings program for private-sector employees who do not have access to employer-sponsored retirement plans. 2022-08-03T19:00:00-05:00Hawaii joins a growing list of states to enact astate-facilitated retirement savings program for private-sector employees whodo not have access to employer-sponsored retirement plans.Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo