The state Legislature voted this week to pass a proposal for a state-run retirement fund program.
Senate Bill 3289 would create a state-managed payroll deduction retirement plan for private sector employees who do not have access to employer-provided plans.
Eligible employees would be able to opt-in to the program and have a certain amount of money automatically withheld from paychecks to be saved in a Roth IRA.
The bill allocates up to $25 million to the program’s special fund through the 2022-2023 fiscal year, with another $2.2 million for program administration and outreach.
That $25 million would be used for an incentive to join the program: The state will match the retirement contributions of the first 50,000 employees to participate in the program up to $500 for one year after initial enrollment.
The bill has been sent to Gov. David Ige for his consideration.