Rhode Island is on the road to possibly becoming a member of the Secure Choice Club. A bill has been introduced in the state’s House of Representatives that would establish a state-run retirement program that would cover those whose employers do not offer one.
Rep. Evan P. Shanley (D-East Greenwich), who serves as Chairman of the House State Government and Elections Committee, on Jan. 10, 2024, introduced House Bill 7127, the Rhode Island Secure Choice Retirement Savings Program Act.
Shanley’s bill would provide retirement plan coverage for eligible employees aged 18 and over who work for an employer with five or more employees that does not offer a plan. Through the program, employees would contribute to a payroll-deduction IRA administered by the office of the general treasurer. Employees would be automatically enrolled, but would have the right to opt out of the program if they chose to; in addition, those who opt out of the program would have the right to opt back in later if they choose.
The office of the general treasurer would be empowered to determine the plan features and select an appropriate third-party administrator for the program.
Eligible employers—those with five or more employees and that do not offer a retirement plan—would be required to establish a payroll deposit retirement savings arrangement by which eligible employees can participate, on a rolling basis:
- Employers with more than 100 employees: within one year of the opening of the program for enrollment
- Employers with more than 50 employees: within two years of the opening of the program for enrollment
- All other employers: within three years of the opening of the program for enrollment
- The general treasurer would designate an open enrollment period every year.
The bill would take effect immediately upon enactment.
Status
House Bill 7127 has been referred to the House Finance Committee.
