Bill Text: HI HB2251 | 2020 | Regular Session | Introduced
Bill Title: Relating To Retirement Savings.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Introduced - Dead) 2020-02-12 - The committee(s) on HSH recommend(s) that the measure be deferred. [HB2251 Detail]
Download: Hawaii-2020-HB2251-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2251 |
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THIRTIETH LEGISLATURE, 2020 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO RETIREMENT SAVINGS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1.
The legislature finds that there is an imminent retirement security
crisis in the State, as many individuals do not have access to an
employer-sponsored retirement plan.
Individuals without a retirement plan are at significant risk of not
having enough retirement income to meet basic expenses during retirement. A retirement savings plan can help employees
achieve financial security, improve economic mobility, and reduce wealth
disparity.
In 2017, Oregon was the first state to
implement a retirement savings plan that covers private sector workers who do
not otherwise have access to a savings plan provided by their employer. Other states have adopted similar programs,
including California, Connecticut, Illinois, Maryland, Massachusetts, New
Jersey, and Vermont.
The legislature also finds that individuals
need a lifelong savings system that provides them with the opportunity to build
their assets and attain future financial stability. Providing private sector employees with
access to employer-sponsored retirement plans is a reliable way to promote
savings needed for a secure retirement, improve employees' financial security,
and reduce wealth disparity in society.
The legislature further finds that
approximately fifty per cent of the State's private sector employees work for
an employer that does not offer a retirement plan or are not eligible for the
plan offered. The lack of opportunity to
participate in an employer-provided retirement plan spans all levels of
education and earnings. An employee who is
offered the opportunity to save through the employee's place of employment is
significantly more likely to participate and make steady contributions to build
retirement savings.
The purpose of this Act is to establish a retirement
savings task force to secure a consultant to:
(1) Assess the feasibility of a Hawaii retirement
savings program;
(2) Research the implications of the federal
SECURE Act, enacted on December 20, 2019;
(3) Draft an implementation plan for a retirement savings
program; and
(4) Submit to the legislature a report of findings and recommendations, including any proposed legislation, to implement the plan.
SECTION
2. (a)
There is established a retirement savings task force to secure a consultant to:
(1) Assess
the feasibility of a Hawaii retirement savings program;
(2) Research
the implications of the federal SECURE Act, enacted on December 20, 2019;
(3) Draft
an implementation plan for a retirement savings program; and
(4) Submit to the legislature a report of findings and recommendations, including any proposed legislation, to implement the plan.
(b) The
task force shall be composed of the following members:
(1) The
director of finance, or the director's designee;
(2) The
director of labor and industrial relations, or the director's designee;
(3) One
individual to represent employees, who shall be selected by the speaker of the
house of representatives;
(4) One
individual to represent small businesses, who shall be selected by the
president of the senate;
(5) An
attorney with professional experience in pension plans, who shall be selected jointly
by the speaker of the house of representatives and the president of the senate;
(6) A
third-party plan administrator, who shall be selected jointly by the speaker of
the house of representatives and the president of the senate;
(7) A
fiduciary investment adviser, who shall be selected jointly by the speaker of
the house of representatives and the president of the senate;
(8) A
fee-for-service investment adviser, who shall be selected jointly by the
speaker of the house of representatives and the president of the senate; and
(9) A
representative of retirees, who shall be selected jointly by the speaker of the
house of representatives and the president of the senate.
(c) The task force may issue a request for proposals for a third party to conduct the activities identified in section 2(a) of this Act. The contracting of services pursuant to this Act shall be exempt from chapter 103D, Hawaii Revised Statutes.
(d) The task force shall submit to the legislature a report of its findings and recommendations, including any proposed legislation, no later than forty days prior to the convening of the regular session of 2021.
(e) The task force shall cease to exist on June 30, 2021.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2020-2021 to retain a consultant to conduct the activities identified in section 2(a) of this Act and pay for associated expenses, including $150,000 for one full-time equivalent (1.0 FTE) position to manage the retirement savings program.
The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.
SECTION 4. This Act shall take effect on July 1, 2020.
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INTRODUCED BY: |
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Report Title:
Retirement
Savings; Hawaii Retirement Savings Program; Task Force; Consultant; Appropriation
Description:
Establishes the Retirement Savings Task Force to secure a consultant to: assess the
feasibility of a Hawaii Retirement Savings Program; research the implications
of the enactment of the federal SECURE Act; draft an implementation plan for the
Retirement Savings Program; and report to the Legislature. Makes an appropriation.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
