STAND. COM. REP. NO. 3044

Honolulu, Hawaii

RE: S.B. No. 2490

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2490, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to establish and appropriate funds for a task force to draft an implementation plan for creating a retirement savings program for private sector employees who are not covered by an existing employer-sponsored retirement plan.

Your Committee received written comments in support of this measure from AARP, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Family Caregiver Coalition, Maui Chamber of Commerce, National Conference on Public Employee Retirement Systems, and seven individuals.

Your Committee received written comments in opposition to this measure from the American Council of Life Insurers, NAIFA Hawaii, and SIFMA.

Your Committee received written comments on this measure from the State Procurement Office and the Tax Foundation of Hawaii.

Your Committee finds that half of our State's private sector workers do not have access to an employer-sponsored retirement plan, and very few who are eligible to contribute to an individual retirement account actually do so. Low-wage workers are especially unlikely to have retirement plans available to them at their workplaces. Also, a major advantage of a state plan would be that workers could keep their accounts with them when and if they change jobs. Lastly, an important feature of existing state plans is automatic enrollment, which has been found to make it easier for workers to save for their retirement.

Your Committee has amended this measure by:

(1) Changing the appropriation to an unspecified amount;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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. 2490, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2490, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair