Rhode Island recently launched its Secure Choice Retirement Savings Program, a significant step toward addressing the retirement savings gap in the state. This initiative is designed to provide workers without access to employer-sponsored retirement plans an opportunity to save for their future, ensuring greater financial security in retirement.
What is Rhode Island Secure Choice?
The Rhode Island Secure Choice Retirement Savings Program is a state-administered, low-cost retirement savings solution designed to address the growing retirement savings crisis. Signed into law in 2024, this program mandates certain employers to provide a retirement savings option to their employees through payroll deductions.
Key Features and Requirements
- Purpose: Enables private-sector employees to save for retirement conveniently and affordably.
- Mandatory Participation: Applies to employers with 5 or more employees who do not already offer a retirement plan.
- Phased Implementation: Employers with over 100 employees must comply within 12 months, those with over 50 within 24 months, and all eligible employers within 36 months of the program’s launch.
- Employee-Centric: Employees are automatically enrolled but may opt out anytime. Savings are portable (can be taken to different employers) and owned by the employee.
Benefits for Small Businesses
- Enhanced Employee Retention: Offering a retirement plan helps attract and retain talent, showing employees you value their future.
- Compliance Ease: The program minimizes administrative burdens and legal liabilities for employers, as it is state-managed.
- Cost-Effective Solution: Employers face no setup fees, and the program is structured to reduce ongoing costs.
Why Retirement Savings Matter
Retirement savings programs not only secure employees’ financial futures but also enhance workplace morale and loyalty. With nearly 70% of workers at small businesses lacking retirement savings options, Secure Choice offers a practical solution.
Take Action Today!
Ensure compliance and support your employees’ financial well-being. Let us help you navigate these changes with confidence. For expert guidance on implementing the Rhode Island Secure Choice Retirement Savings Program and aligning it with your business’s financial strategy, please call us at (401) 921-2000 or contact us here.