PROVIDENCE, R.I., (WLNE) — Gov. Dan McKee was joined by Rep. Evan Shanley, Sen. Meghan Kallman, and General Treasurer James Diossa to sign the Rhode Island Secure Choice Retirement Savings Program.
The governor’s office said the bill aims to help private employees who do not have an employer-sponsored retirement plan to save for retirement.
The General Treasurer will manage the plans, and private employers that do not have plans like 401(k)s will need to give employees access.
Employees that take part in the plan will own their savings, decide their contribution amounts through automatic payroll deductions, and can carry their savings with them as they change jobs.
“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,” Shanley said. “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.”