Is Your Business Ready for Hawaiʻi’s New Retirement Savings Program?
There’s a change coming for Hawaiʻi employers — and it’s one most small business owners haven’t heard about yet.
The Hawaiʻi Retirement Savings Program (HRSP) is set to launch this year, and if you have even one employee, it may apply to your business.
This isn’t a distant concern. It’s something to prepare for now — calmly, clearly, and without scrambling.
Here’s what you need to know.
What Is the Hawaiʻi Retirement Savings Program?
The HRSP is a state-mandated retirement savings program created to help private-sector workers in Hawaiʻi save for their future.
The reality is striking: nearly half of private-sector workers in Hawaiʻi currently have no access to a workplace retirement plan. For small businesses, that number is even higher.
The HRSP was designed to close that gap — and it puts the responsibility on employers to facilitate it.
How It Works
The basics:
- The HRSP is a state-facilitated Roth IRA program for eligible employees
- Employees are automatically enrolled at a default contribution rate of 5% of their wages
- Employees can opt out — but enrollment is automatic unless they choose otherwise
- Employers must withhold contributions from employee paychecks and remit them to the program
- No employer contributions are required — you are not asked to match
- Your main responsibilities are: notify employees, withhold their contributions, and remit funds to the program
To be eligible for the program, employees must be 18 or older, residents of Hawaiʻi, and receiving wages in the state.
Does This Apply to Your Business?
Most private-sector employers in Hawaiʻi with at least one employee will be covered — unless they already offer a qualifying retirement plan.
Here’s the key exemption:
If your business already offers a qualified retirement plan — such as a 401(k) — you are exempt from the HRSP.
If you don’t currently offer one, the HRSP will apply to your business once the program launches.
This is a good moment to check: Do you already have a plan in place? If so, make sure it’s properly documented. If not, now is the time to decide whether to adopt one — or participate in the state program.
When Does It Launch?
The HRSP is expected to launch as early as mid-2026. Final enrollment deadlines have not yet been announced.
That might sound like there’s still time. And there is — but it moves quickly.
Businesses that wait until the last moment tend to face limited options and more stress. Businesses that plan ahead get to make deliberate choices.
What Employers Need to Do Now
You don’t need to do everything at once. But a few practical steps go a long way:
- Find out whether you already offer a qualifying plan — and confirm it’s current and properly maintained
- If you don’t have a plan, evaluate whether adopting a 401(k) or similar option makes sense for your business
- Update your payroll setup to be ready to withhold and remit employee contributions
- Prepare to notify employees — written notice of their right to opt out will be required
- Stay tuned for the official launch date and enrollment deadlines from the state
Small steps now prevent big scrambles later.
A Quick Employer Checklist
- Confirm whether your business is covered by the HRSP
- Review whether you already offer a qualifying retirement plan
- Talk with your payroll provider about withholding and remittance readiness
- Plan employee communication around auto-enrollment and opt-out rights
- Monitor official HRSP deadlines as they are announced
Why This Matters Beyond Compliance
The HRSP exists because too many working people in Hawaiʻi are reaching retirement without savings — in one of the most expensive states in the country.
For employers, navigating this with care means more than checking a compliance box.
It means helping your employees understand what’s changing and why. It means running payroll in a way that reflects those changes accurately. And it means being the kind of employer people trust with their financial future.
That’s what good HR in Hawaiʻi looks like.
Not sure if the HRSP applies to your business — or how to get ready?
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