A group of Rhode Island legislators have introduced a new bill that would create a state-sponsored auto-IRA program for private sector workers in the state who otherwise lack access to an opportunity to save for retirement via tax-advantaged paycheck deferrals.
The program, according to the text of Senate Bill No. 2045, would be structured similarly to other "Secure Choice" savings programs that are in place or being implemented in 16 states.
Specifically, the legislation would require private-sector employers with five or more employees in Rhode Island to offer a retirement plan to their employees. It also ensures that any type of retirement plan, such as a 401(k) plan, satisfies the requirement.
In addition, Senate Bill No. 2045 would create a state-facilitated IRA-based retirement program that will allow participating employers to meet this requirement without starting and operating their own plans.
