HONG EXAMINER – October 2026
Monthly Newsletter of Hong Consulting, LLC.
HONG EXAMINER – OCTOBER 2026
Hawaii Retirement Savings Program (HRSP). Something that may have flown under the radar of most small business owners in Hawaii is the creation of HRSP. Hawaii’s Acts 296 & 113 require businesses in Hawaii to provide their own retirement plans for workers or enroll their employees in the Hawaii Retirement Savings Program. The goal of the program is to provide employees with an option to save for retirement and to increase the rate of retirement savings.
The State of Hawaii is projecting the Hawaiʻi Retirement Savings Program will launch in December 2026 but business owners should start planning now about whether they will participate or start their own retirement plans. Employers with at least one employee that do not offer a retirement plan must enroll their employees in the HRSP.
HRSP is a state run Roth IRA program. Contributions are made through payroll deductions that the employer must facilitate. Employees are automatically enrolled but can opt out and the default contribution rate is set at 5%.[1] Employers must notify employees of the program, register employees in the program, withhold contributions, and remit contributions. They must also maintain and update employee information in program’s portal. Employers are not required or permitted to make employer contributions to the HRSP.[2]
If employers are required to participate and fail to do so once the Hawaii Retirement Savings Program is launched, they may face penalties. These penalties could be up to $5,000 per calendar year. Additionally, any eligible employee denied enrollment into the program may file a civil action against the employer for injunctive relief and the recovery of costs, including reasonable attorneys' fees. [3]
The time to start planning for compliance with the HSRP is now. It takes time to review what type of retirement plan works for both the business and its employees. It takes time to determine which vendors to use to run the retirement plan. It takes time to set up the retirement plan. Starting now means you won’t be forced into the HSRP when it launches.
For more information on the Hawaii Retirement Savings Program (HRSP), please click on the following links:
Should you have any questions or comments about the program or would like assistance setting up your retirement plan, please don’t hesitate to reach out to us at adrianhong@hongconsultingllc.com.
[1] Martin, Mallory. “Hawaii’s Retirement Plan Rules Are Changing.” ProService Hawaii, 11 Feb. 2026, www.proservice.com/hawaiis-retirement-plan-rules-are-changing/.
[2] “Hawaiʻi Retirement Savings Program.” State of Hawaiʻi Department of Labor and Industrial Relations, labor.hawaii.gov/hrsp/. Accessed 26 June 2026.
[3] Ibid.
