Rhode Island Launches Retirement Savings Program for Private-Sector Workers
Warwick, RI – Former US naval officer and current owner of AASign & Awning, Darryl Lindie, has embraced a people-first philosophy since acquiring the business in 2023. His commitment to employee well-being now extends to a newly approved retirement savings program aimed at enhancing the financial security of Rhode Island’s workforce.
Signed into law by Governor Dan McKee in September 2024, the RISavers program seeks to address a significant gap, as approximately 170,000 private-sector workers in the state lack access to employer-sponsored retirement plans. The initiative, modeled after successful programs in Connecticut and elsewhere, will automatically establish Roth Individual Retirement Accounts (IRAs) for eligible employees of businesses with at least five workers, with phased deadlines for compliance.
Rhode Island Treasurer James Diossa touts RISavers as a streamlined solution to retirement savings, simplifying the process for those who may struggle to navigate the financial landscape independently. Businesses are not required to match employee contributions, minimizing their administrative burden to processing payroll deductions.
Governor McKee hailed the initiative as a beneficial step for families and the state economy, emphasizing its absence of taxpayer costs or additional staffing requirements. In quantifying the investment, a fiscal note indicated a modest startup cost of $311,000, sourced from existing treasurer’s office funds.
With plans to initiate a pilot program in spring 2025, Rhode Island’s program promises to drive down fees for participants. Lindie, whose workforce is eager to engage with the new benefits, believes the retirement plan will aid in attracting younger talent to his growing sign shop.
“As we seek to recruit a younger generation, these kinds of benefits are essential,” Lindie stated. The RISavers program signifies a crucial milestone in improving retirement savings accessibility for Rhode Island’s private-sector workforce.
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Photo credit rhodeislandcurrent.com
