Governor McKee Signs Treasury Bill Creating the Rhode Island Secure Choice Retirement Savings Program

Governor McKee Signs Treasury Bill Creating the Rhode Island Secure Choice Retirement Savings Program

Published on Thursday, September 05, 2024

Providence, RI - Legislation championed by Rhode Island General Treasurer James A. Diossa that will create the Rhode Island Secure Choice Retirement Savings Program, designed to help employees in the private sector who may not have access to employer-sponsored retirement plans, like 401(k) plans, to save for retirement was signed into law by Governor Daniel J. McKee. The legislation (H7127AA-S204AA) was sponsored by Representative Evan Shanley and Senator Meghan Kallman.

The Rhode Island Secure Choice Retirement Savings Program will be managed by the Office of the General Treasurer. Private employers who do not currently offer a retirement plan will be required to provide access to the Secure Choice program. Enrollment for employers will be free, and employees will be automatically enrolled but can opt out at any time. Employees will own their savings, decide their contribution amounts through automatic payroll deductions, and can carry their savings with them as they change jobs.

"Secure Choice will transform retirement in our state and help the 40% of Rhode Island private sector employees with little or no retirement savings prepare for a comfortable, dignified life after work," said General Treasurer Diossa.Thank you to the advocates who worked to pass this legislation, its lead sponsors Senator Kallman and Representative Shanley, and Governor McKee."

"As our Administration works to raise incomes for all Rhode Islanders, it's a no-brainer that we would establish the Secure Choice program that will ensure access to retirement savings plans and set our residents up for long-term financial success," said Governor McKee."I commend Treasurer Diossa for making Secure Choice a top priority this legislative session and I thank the bill sponsors for their dedication to the financial security of all Rhode Islanders."

"While most Rhode Islanders save for retirement through pensions or a 401(k), there are many who don't have access to these retirement plans, and we're seeing a retirement savings crisis across the country," said Representative Shanley."This program will allow workers to contribute a portion of their salary to individual savings accounts through payroll deductions, at no cost to their employers. When I talk to small businesses in my community, they really care about their staff and want their workers to be able to save for retirement. But small business owners can't be experts in everything and often don't know where to start with offering retirement savings. This law gives them a way to support their workers and gives workers a chance to save."

"Most of us will reach an age when we will want to stop working; however, for thousands of workers in Rhode Island this has not been an option because they did not have a convenient way to set money aside for retirement," said Senator Kallman."Secure Choice is a convenient, portable, voluntary IRA managed by the state that will work directly through workers' jobs - essentially a public-option IRA for those whose employers do not offer one. I also want to thank Treasurer Diossa and his team along with the huge coalition of community advocates who all did an enormous amount of work to develop this legislation and move it across the finish line."

"The Office of Healthy Aging's mission is to help older Rhode Islanders and adults living with disabilities to age healthfully, happily and safely. We believe that everyone deserves the right to age well, and economic security allows older adults to access resources to afford the necessities of life - like affordable housing, healthy foods, and adequate health care," said Maria E. Cimini, Director of the Office of Healthy Aging."Providing Rhode Islanders with the opportunity to plan and save for their retirement years, regardless of their place of employment, enables more of our friends, family and neighbors to thrive as they age."

###