Skip to Main Content
Home /

Program Overview

How it works for employees

The HRSP is a straightforward way to save for your retirement through convenient payroll deductions.

  • Roth IRA: For each enrolled employee, a Roth IRA is established where your contributions will be deposited. A Roth IRA uses after-tax dollars, and qualified distributions in retirement are tax-free.
  • Automatic enrollment (Effective May 29, 2025): Recent legislation changed the program to an automatic enrollment model. You will be automatically enrolled and have your contributions withheld from your paycheck unless you explicitly opt out. Employers will provide a written notice of your right to opt out.
  • Default contribution rate: The default contribution rate is set at 5% of your compensation.
  • Flexible contributions: You have the flexibility to increase, decrease, or stop your contributions at any time, subject to IRS limits.
  • Portable accounts: Your retirement savings account is yours and is fully portable, so you can take it with you if you change jobs.

How it works for employers

Participating in the HRSP is a simple way to meet state mandates while offering a valuable retirement savings option to your employees.

  • No employer contributions required: You are not required to make matching or other contributions to your employees’ accounts.
  • Limited administrative responsibility: Your main tasks are to provide employees with the required information, withhold employee contributions, and remit those funds to the program.
  • Exemption for existing plans: If you already offer a qualified retirement plan to your employees, you are exempt from the program.
  • Penalty for non-compliance: Failure to comply with the program’s requirements could result in financial penalties.

What happens next

We are working to get the program up and running. The Hawaii Retirement Savings Board is finalizing the implementation plan, and we will update this page with the next steps as soon as they are available.  In the meantime, you can explore the information on this page to learn more about how the program will work for both employees and employers.