THE SENATE	S.C.R. NO.	97
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING THE CONVENING OF A RETIREMENT SAVINGS TASK FORCE TO ASSESS THE FEASIBILITY OF establishING a HAWAII RETIREMENT SAVINGS PROGRAM.

 

 

 

        WHEREAS, there is an imminent retirement security crisis in the State with many individuals without access to an employer-sponsored retirement plan; and

 

        WHEREAS, individuals without a retirement plan are at significant risk of not having enough retirement income to meet their basic expenses during retirement; and

 

        WHEREAS, a retirement savings plan can help employees achieve financial security, improve economic mobility, and reduce wealth disparity; and

 

        WHEREAS, in 2017, Oregon was the first state to implement a retirement savings program that covers private sector employees who do not otherwise have access to a retirement savings program provided by their employer; and

 

        WHEREAS, other states have adopted similar programs, including California and Illinois; and

 

        WHEREAS, individuals need a lifelong savings system that provides them with the opportunity to build their assets and attain future financial stability; and

 

        WHEREAS, providing private sector employees with access to a payroll deduction retirement savings option is a reliable way to promote savings needed for a secure retirement, improve employees' financial security, and reduce wealth disparity in society; and

        WHEREAS, approximately fifty percent 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; and

 

        WHEREAS, the lack of opportunity to participate in an employer-provided retirement plan spans all levels of education and earnings; and

 

        WHEREAS, an employee who is offered the opportunity to save through the employee's place of employment is fifteen times more likely to participate and make steady contributions to build retirement savings; and

 

        WHEREAS, the creation of a retirement savings task force is critical to defining, analyzing, assessing, and coming up with findings and recommendations related to the establishment of a retirement savings program for employees in the State; now, therefore,

 

        BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2021, the House of Representatives concurring, that a retirement savings task force is requested to be convened to:

 

        (1)   Assess the feasibility of a Hawaii retirement savings program;

 

        (2)   Review the implications of the federal SECURE Act, which was enacted on December 20, 2019; and

 

        (3)   If a retirement savings program is deemed feasible for Hawaii, draft:

 

                (A)   An implementation plan that recommends the best model for Hawaii;

 

                (B)   An administrative framework to provide initial start-up of the program, oversight over the program, a timeline for establishing the program, and the proposed start-up costs for the program; and

                (C)   A general marketing and outreach framework to encourage small business and employee participation; and

 

BE IT FURTHER RESOLVED that to assist in its assessment of the feasibility of a Hawaii retirement savings program, the retirement savings task force is requested to review independent studies and reports and receive briefings by national and local experts in retirement savings to:

 

        (1)   Understand the fiscal implications to Hawaii if a state-facilitated retirement program is enacted, and the implications if the State remains status quo;

 

        (2)   Analyze the benefits and risks of the different retirement savings models of California, Illinois, Oregon, and other states that have initiated a similar state-facilitated retirement savings program;

 

        (3)   Explore the feasibility and benefits of inter-state partnerships and cooperative agreements with similar retirement savings programs established in other jurisdictions;

 

        (4)   Be informed of the implications and current findings of the federal SECURE Act, enacted on December 20, 2019, and to describe benefits and limitations of the Act; and

 

        (5)   Review the efficacy of current financial literacy educational outreach and marketing to individual consumers and the impact on retirement savings; and

 

        BE IT FURTHER RESOLVED that the retirement savings task force is requested to comprise the following members, or their designees:

 

        (1)   The director of finance;

 

        (2)   The director of labor and industrial relations;

        (3)   One member representing small business without employer-sponsored retirement, to be selected by the President of the Senate;

 

        (4)   One member representing employees, to be appointed by the Speaker of the House of Representatives;

 

        (5)   One member who is an attorney with professional experience in retirement savings plans, to be selected by the President of the Senate;

 

        (6)   One member who is a third-party plan administrator, to be selected by the Speaker of the House of Representatives;

 

        (7)   One member of an organization with professional knowledge of and experience working with low-income and working families to achieve and sustain economic self-sufficiency, to be selected by the President of the Senate;

 

        (8)   One member representing a non-profit organization without an employer-sponsored retirement, to be selected by the Speaker of the House of Representatives;

 

        (9)   One member of an organization representing older adults and retirees, to be selected by the Speaker of the House of Representatives;

 

      (10)   One member of the State Senate, to be appointed by the Senate President, who shall convene the task force, and who is requested to serve as:

 

                (A)   A non-voting member of the task force; and

 

                (B)   A co-chair pro tempore of the task force until the members of the task force elect a chair and vice chair of the task force; and

      (11)   One member of the State House of Representatives, to be appointed by the Speaker of the House of Representatives, and who is requested to serve as:

 

                (A)   A non-voting member of the task force; and

 

                (B)   A co-chair pro tempore of the task force until the members of the task force elect a chair and vice chair of the task force; and

 

        BE IT FURTHER RESOLVED that the members of the retirement savings task force are requested to elect a chair and vice chair of the task force from amongst themselves to replace the co-chairs pro tempore; and

 

        BE IT FURTHER RESOLVED that the retirement savings task force may request and utilize an independent consultant or administrative facilitator, paid or in-kind from a third-party source, to assist the task force in carrying out its activities, including but not limited to:

 

        (1)   Coordinating meeting logistics;

 

        (2)   Preparing agenda;

 

        (3)   Obtaining the independent studies and reports;

 

        (4)   Planning and coordinating local and national experts for briefings per request of the retirement savings task force;

 

        (5)   Notetaking; and

 

        (6)   Preparing the final report to the Legislature; and

 

        BE IT FURTHER RESOLVED that the retirement savings task force is requested to submit a report of its findings, recommendations, an implementation plan of a retirement savings model deemed feasible for Hawaii, and any proposed legislation, to the Legislature no later than forty days prior to the convening of the Regular Session of 2022; and

        BE IT FURTHER RESOLVED that the retirement savings task force is requested to dissolve on September 30, 2022; and

 

        BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Finance and Director of Labor and Industrial Relations.

 

 

 

	OFFERED BY:	_____________________________

Report Title:  

Retirement Savings Task Force; Hawaii Retirement Savings Program