Home Economy R.I., Conn. launch private-sector retirement savings partnership

R.I., Conn. launch private-sector retirement savings partnership

By

Christopher Allen

-

11/20/2024

Treasurer Diossa Signs Agreement with Comptroller Scanlon — R.I. GENERAL TREASURER JAMES A. DIOSSA [right] announced on Wednesday an interstate partnership with Connecticut as part of RISavers, the state's first publicly administered retirement savings program for private sector employees. Pictured at left is Connecticut State Comptroller Sean Scanlon. /COURTESY RI TREASURER'S OFFICE

WARWICK – R.I. General Treasurer James A. Diossa on Wednesday announced an interstate partnership with Connecticut to launch RISavers, Rhode Island’s first-ever public retirement savings program for private-sector employees. Joined by state officials and Connecticut Comptroller Sean Scanlon, Diossa made the announcement at AA Sign & Awning. Made possible by the Secure Choice Retirement Savings

Already a Subscriber? Log in

To Continue Reading This Article

Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.

Learn More and Become a Subscriber

Critical RI business news and analysis updated daily.
1 year of print (26 issues).
Unlimited access to all subscriber only content on our website, on any device.
Free email alerts.
Annual Book of Lists Print Edition.
All special issues produced during subscription term.

Click Here to purchase a paywall bypass link for this article

PBN Branded Content

Advancing Orthopedic Patient Care at South County Health

World-Class Joint Replacement Expertise, Here at Home Joint pain can be life-altering, limiting mobility and…

Learn More

No posts to display

LEAVE A REPLY Cancel reply

WARWICK – R.I. General Treasurer James A. Diossa on Wednesday announced an interstate partnership with Connecticut to launch RISavers, Rhode Island's first-ever public retirement savings program for private-sector employees. Joined by state officials and Connecticut Comptroller Sean Scanlon, Diossa made the announcement at AA Sign & Awning. Made possible by the Secure Choice Retirement Savings Program Act of 2024, the program seeks to target the more than 40% of private-sector employees in Rhode Island lacking a retirement savings plan. "Rhode Island has taken the first step to closing the retirement savings gap," said Diossa. Once fully implemented, any private employer with five or more employees that doesn’t currently offer a retirement plan will be mandated to provide access to RISavers. Employees will be auto-enrolled but can opt out at any time, while participants can adjust their individual contribution amounts through automatic payroll deductions and can transfer their savings with them to future employers. Accounts will be structured as Roth IRAs, allowing withdrawals of contributions at any time without fees or penalties. Diossa, who is charged with administering contributions and investing the funds in retirement savings vehicles, said by joining efforts with Connecticut's MyCTSavings and its private-sector administrator Vestwell State Savings, "we gain an experienced partner that will help Rhode Island implement RISavers quickly and administer the program efficiently." Vestwell runs similar programs in 10 other states. MyCTSavings has to date accumulated roughly $33 million in assets, has more than 6,600 participating employers, and over 29,000 employees enrolled, Scanlon said. "After a lifetime of hard work, everyone deserves access to a dignified retirement," he said. "Today's historic partnership between Connecticut and Rhode Island will help make that a reality for the residents of both states." The R.I. Office of the General Treasurer plans to pilot the program in the spring of 2025 with a full launch "shortly thereafter." The state will pay Connecticut a one-time $100,000 fee for start-up costs. Diossa estimates that by 2032, the program could save Rhode Island taxpayers more than $25 million. Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.