Treasurer Diossa Announces Interstate Partnership and Program Administrator for RISavers Program

Published on Wednesday, November 20, 2024

Cranston, RI – Today, General Treasurer James A. Diossa announced that Treasury will offer a public retirement savings program for Rhode Island private sector employees not currently offered a retirement savings option by their employer. The RISavers Program (“RISavers”) – created by the Secure Choice Retirement Savings Program Act – will partner with an existing similar program in Connecticut to offer Rhode Islanders this important service.

The RISavers Program will offer employees a Roth Individual Retirement Account (“IRA”). Employees at eligible businesses will be automatically enrolled to save but can opt out at any time. Retirement savings accounts opened under RISavers will follow the employee if they change jobs. Accounts opened through the Program are portable so savers will have the ability to choose their risk preference and contribution rate. Contributions will be processed as a payroll deduction to make participation easy for employers and employees alike. Employer participation is also easy. Employers must provide program information and process their employees’ deductions. Matching contributions are prohibited by law. 

Treasury will launch a pilot program in spring of 2025 with a full program launch followed shortly thereafter. 

The interstate partnership with Connecticut is just the second of its type in the country. As one of the first states to enact a public retirement savings program, Connecticut has become a leading voice on retirement security. Under the leadership of Comptroller Sean Scanlon, nearly 30,000 Connecticut residents have saved over $33 million dollars in just two years with MyCTSavings. 

“Over 170,000 Rhode Islanders lack access to a retirement savings plan at work. 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,” said General Treasurer Diossa. “Through this interstate agreement, we gain an experienced partner that will help Rhode Island implement RISavers quickly and administer the program efficiently.” 

"Ensuring quick, easy access to retirement savings plans is critical to keep money in Rhode Islanders' pockets," said Governor Dan McKee. "As we work to raise incomes, partnering with the state of Connecticut's Comptroller and Vestwell Retirement Savings will put thousands of our residents on a path to a financially secure future."

“As a small business owner myself, I know how daunting it can be to set up a retirement plan for employees. In fact, reports indicate that more than 40% of small businesses do not offer retirement plan benefits, which can hinder their ability to attract and retain employees,” said House Speaker K. Joseph Shekarchi. “Thank you to our partners in Connecticut for innovatively working across state lines to benefit our residents.”

“RISavers will help ensure the long-term financial security of our state and its residents,” added Senator Louis P. DiPalma (D-Dist. 12, Little Compton, Middletown, Newport, Tiverton).  “This portable, easy-to use tool will help ensure every Rhode Islander can save for their retirement, and that will have so many benefits for individuals, families, and communities. On behalf of the Rhode Island Senate, I want to thank all the advocates and partners who have helped make this important program a reality.” 

"After a lifetime of hard work, everyone deserves access to a dignified retirement. Today's historic partnership between Connecticut and Rhode Island will help make that a reality for the residents of both states. 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. “This would not have happened without the visionary and tireless leadership of Treasurer Diossa, and I am deeply grateful to him, Governor McKee, Speaker Shekarchi, and industry partners for championing this effort.”

RISavers will be overseen by Treasury in cooperation with Vestwell State Savings, a third-party administrator with experience implementing and administering state facilitated retirement savings plans in ten other states. 

“Vestwell is excited to see the expansion of partnerships between states as a pathway to efficiently scale and provide access to retirement savings,” said Douglas Magnolia, President of Vestwell State Savings. “These vital savings programs empower more individuals with the tools they need to build a brighter financial future. We look forward to working with Rhode Island and Connecticut to bring this partnership to life in 2025.

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