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

In a move aimed at addressing the retirement savings gap among private-sector workers, Governor Daniel J. McKee signed into law the Rhode Island Secure Choice Retirement Savings Program. This new initiative, spearheaded by General Treasurer James A. Diossa and backed by Representative Evan Shanley and Senator Meghan Kallman, is designed to offer employees without access to employer-sponsored retirement plans, such as 401(k)s, a simple and accessible way to save for retirement.

How It Works

The program, which will be managed by the Office of the General Treasurer, will require private employers who do not currently offer retirement plans to provide access to the Secure Choice program. Participation for employers will come at no cost. Employees will be automatically enrolled but can opt out if they choose. Savings will be owned by the employee and will move with them as they change jobs, offering portability and flexibility that traditional retirement plans often lack.

This legislation comes as a significant step in closing the retirement savings gap for the 40% of Rhode Island’s private-sector workers who currently have little or no retirement savings. As General Treasurer Diossa emphasized, this program is about providing a “comfortable, dignified life after work” for more Rhode Islanders.

Impact on Older Rhode Islanders

For older workers, particularly those nearing retirement without sufficient savings, Secure Choice offers a critical opportunity to begin or continue saving, even if they’ve previously lacked access to a plan. As traditional pension systems shrink and Social Security faces funding challenges, having a reliable, state-supported retirement savings option becomes increasingly vital.

Many older adults in Rhode Island face a growing economic insecurity as they age. The rising costs of housing, healthcare, and daily living often stretch fixed incomes, putting retirees at risk of financial hardship. With the introduction of Secure Choice, these individuals will have a convenient way to build or supplement their savings, potentially improving their quality of life in later years. As Maria E. Cimini, Director of the Office of Healthy Aging, noted, “Economic security allows older adults to access resources to afford the necessities of life.” Secure Choice contributes to this mission by allowing more workers to prepare for the costs of aging.

To learn more, read the press release at: https://treasury.ri.gov/press-releases/governor-mckee-signs-treasury-bill-creating-rhode-island-secure-choice-retirement