Hawaii Department of Labor and Industrial Relations

The board discussed the implementation of the Hawaii Retirement Savings Program, specifically evaluating multi-state partnership proposals from the Partnership for a Dignified Retirement in Colorado and the Retirement Alliance in Connecticut. The discussion focused on operational readiness, scalability, asset-based management, account growth predictions, and investment fee structures. Members also deliberated on fiduciary responsibilities, the decision-making process for custom versus off-the-shelf investment portfolios, and the implications of liability within different partnership models.

The meeting focused on the implementation progress of the Hawaii Retirement Savings Program. Key discussions included the approval of a $250,000 startup fee for program administration services provided by Vestwell, covering product development, tech buildout, website creation, and ongoing communication and servicing. The board also discussed the recommendation for a two-wave rollout of the program, evaluating the impact of the program's one-plus employee threshold on servicing demands and communication costs. Additionally, the executive director provided updates on necessary future procurements, including a marketing firm, and clarified the budget allocation for administrative services.

The board discussed legislative measures related to the Hawaii Retirement Savings Act, specifically focusing on the definition of covered employers, automatic enrollment requirements, fee limitations, and funding appropriations for program development and operations. Additionally, the meeting addressed the status of recruitment and position establishment for key staff roles, including the Program Specialist and Administrative Assistant III, and reviewed proposed functional statements and administrative procedures for the program.

The board discussed its fiduciary duties regarding the implementation and administration of the Hawaii Retirement Savings Program, citing relevant state statutes and procurement codes. Key topics included requirements for legislative reporting, the necessity of maintaining proper documentation and compliance, and the delegation of authority to the executive director. The board reviewed its role in conducting feasibility studies and discussed the appropriate timeline for updating the legislature on program progress.

The meeting featured a presentation on the Connecticut Retirement Savings Program and its partnership model with other states. Key discussion topics included the benefits of participating in a multi-state alliance, such as administrative cost reductions, fee savings through shared investment and service pricing, and access to an established program infrastructure. The board reviewed governance structures, investment strategy differences, the hybrid fee structure of the program, and growth metrics from the Connecticut program as a reference for potential partnership implementation.