The two houses of the Legislature must be commended for finally passing Senate Bill 1374, which would establish the Hawaii Saves retirement savings plan. It will help the 216,000 workers in Hawaii who do not have a realistic way to save for their retirement to put their own money for the future.

Hawaii Saves will allow Hawaii’s employers — typically small or medium-sized companies — who have not or cannot offer retirement or pension plans for their workers to avoid the cost, risks, responsibilities and fiduciary duties under federal law by simply taking payroll deductions and passing them on to a state-private retirement plan. The plan is designed like Oregon’s successful retirement plan.

But it would be an empty gesture to create this plan without providing the necessary appropriations to put it into effect, a study to select the best plan for Hawaii and hire the best consultants and investment companies to operate the fund. Please appropriate sufficient funds to properly establish a retirement savings plan worthy of Hawaii’s workers.

Francis M. Nakamoto

Moanalua Valley

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