A new program announced today by General Treasurer James A. Diossa will help Rhode Islanders who do not have access to a retirement savings plan through their employer save for the future.
The RISavers Program, which will be offered to private sector employees who are not currently offered a retirement savings option through their employer, is the first step toward closing the retirement savings gap in Rhode Island.
The program, which was created by the Secure Choice Retirement Savings Program Act, builds on the success of Connecticut’s MyCTSavings program. The two states will work together to implement the program, marking the second time in the country that neighboring states have partnered to offer a state-based retirement savings program.
“Over 170,000 Rhode Islanders lack access to a retirement savings plan at work,” said Diossa. “With this strategic partnership, Rhode Island has taken the first step to closing the retirement savings gap. Everyone should have the ability to retire with dignity and financial independence.”
Key Features of RISavers
Employees who are eligible for RISavers will be automatically enrolled in a Roth Individual Retirement Account (IRA) but may opt out at any time. Participation is easy for employers and employees, with contributions made through payroll deductions. Employers are required to provide program information and process employee deductions, but they cannot make matching contributions, as prohibited by law.
RISavers retirement savings accounts “follow” employees from job to job. The Program offers portable accounts that let savers choose their risk preference and contribution rate.
A pilot program is expected to launch in the spring of 2025, with a full program launch to follow shortly after.
Connecticut launched its program in 2022 and has seen early success. According to Diossa’s office, nearly 30,000 Connecticut residents have saved over $33 million dollars in just two years.
“Since the launch of Connecticut’s program in 2022, we have helped tens of thousands of residents begin saving, and I look forward to Rhode Islanders having the same opportunity,” said Connecticut State Comptroller Sean Scanlon.
The Rhode Island Treasury will oversee RISavers in partnership with Vestwell State Savings, a third-party administrator that has helped implement similar programs in ten other states.
Generative artificial intelligence (AI) assisted a What’sUpNewp journalist with the reporting included in this story.