RELATING TO HAWAII RETIREMENT SAVINGS ACT.

Requires covered employers to automatically enroll employees into the retirement savings program unless the employee opts out, reversing the previous opt-in requirement.

Repeals the annual limit on total fees and expenses that can be spent for the program, allowing more flexibility in program administration.

Clarifies the definition of 'covered employer' to include any person in business in Hawaii with employees, while excluding the federal government, state government, and employers who already offer qualified retirement plans.

Appropriates state funds for the development and operation of the Hawaii Retirement Savings Program for fiscal years 2025-2026 and 2026-2027.

Establishes penalties for employers who fail to enroll employees without equitable justification, including liability for missed contributions plus interest and monthly fines.

Changes the effective date to July 1, 3000, which appears to be a placeholder or error that will need correction.

Changed enrollment from voluntary opt-in to automatic opt-out, requiring employers to enroll employees unless they explicitly decline participation.

Added requirement for employers to establish Roth IRA accounts for enrolled employees with an optional Traditional IRA.

Added new powers for the board to accept grants, donations, and legislative appropriations to fund program operations.

Clarified the definition of covered employer to exclude entities with existing qualified retirement plans maintained for at least two years.

Repealed the annual limit on total fees and expenses that can be spent for the program.

Established penalties for employers who fail to enroll eligible employees, including reimbursement of missed contributions plus interest and monthly fines.