AN ACT RELATING TO PUBLIC FINANCE -- RHODE ISLAND SECURE CHOICE RETIREMENT SAVINGS PROGRAM ACT (Makes several technical amendments to the Rhode Island secure choice retirement savings program act necessary for continued administration and inter-state partnership.)

S3086

2026 -- S 3086
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LC004672
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC FINANCE -- RHODE ISLAND SECURE CHOICE RETIREMENT
SAVINGS PROGRAM ACT

Introduced By:
Senators Kallman, DiMario, and DiPalma

Date Introduced:
March 13, 2026

Referred To:
Senate Finance
(General Treasurer)
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 35-23-2, 35-23-4 and 35-23-9 of the General Laws in Chapter 35-
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23 entitled "Rhode Island Secure Choice Retirement Savings Program Act" are hereby amended to
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read as follows:
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35-23-2. Definitions.
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As used in this chapter:
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(1) “Eligible employee” means a person age eighteen (18) years or older who is employed
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by an eligible or optional employer and has been employed for a period of not less than one hundred
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twenty (120) days. “Eligible employee” does not include:
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(i) Any employee covered under the federal Railway Labor Act (45 U.S.C. §§ 151—164
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and 45 U.S.C §§ 181—188), or any employee engaged in interstate commerce not subject to the
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legislative powers of the state, except insofar as application of this chapter is authorized under the
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United States Constitution or laws of the United States; or
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(ii) Any employee on whose behalf an employer makes contributions to a Taft-Hartley
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pension trust fund.
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(2) “Eligible employer” means a person or entity engaged in a business, industry,
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profession, trade, or other enterprise in the state, whether for-profit or not-for-profit, excluding the
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federal government, the state, any municipal corporation, or any of the state’s units or
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instrumentalities, that has five (5) or more employees and that satisfies the requirements to establish

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or participate in a payroll deposit retirement savings arrangement. “Eligible employer” does not
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include an employer that provides a tax-qualified retirement savings program as described in § 35-
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23-9.
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(3) “IRA” means an individual retirement account or individual retirement annuity under
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26 U.S.C § 408 or § 408A (the federal Internal Revenue Code).
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(4) "Optional employee" means a person age eighteen (18) years or older that is not
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employed by an eligible employer but has elected to enroll in the program.
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(4)
(5)
“Optional employer” means a person or entity engaged in a business, industry,
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profession, trade, or other enterprise in the state, whether for-profit or not-for-profit, excluding the
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federal government, the state, any municipal corporation, or any of the state’s units or
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instrumentalities, that has under five (5) employees.
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(5)
(6)
“Participating employer” means an eligible or optional employer that provides a
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payroll deposit retirement savings arrangement provided for by this chapter for eligible employees.
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(6)
(7)
“Payroll deposit retirement savings arrangement” means an arrangement by which
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an employer allows employees to remit payroll deduction contributions to the RISavers retirement
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savings program.
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(7)
(8)
“RISavers retirement savings program” or “program” means a retirement savings
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program offered by the Rhode Island secure choice retirement savings program.
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(8)
(9)
“State investment commission” or “commission” means the state investment
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commission established pursuant to the provisions of § 35-10-1.
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35-23-4. Investments.
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(a) The office of the general treasurer may select an appropriate third-party administrator(s)
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for the program and shall adopt such plan, trust, and/or custodial documents, with such features
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and attributes as the office of the general treasurer determines necessary or advisable in its
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discretion to effectuate the provisions of this chapter in accordance with the following:
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(1) The office of the general treasurer may select one or more firm(s) or company(ies) to
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provide retirement program investments, program administration, and communication services to
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employees who participate in the retirement savings program. The program shall provide for
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appropriate long-term retirement-oriented investments and shall include investment options as
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determined by the state investment commission. In determining the firm(s) or the company(ies) to
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provide these services, the office of the general treasurer shall consider the following:
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(i) The financial stability of the company or firm;
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(ii) The cost of the investments, program administration, and services to the members;
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(iii) The experience of the company or firm in administering retirement savings plans;

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(iv) The experience of the company or firm in providing education, counseling, and advice
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to participants of retirement savings plans; and
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(v) Any criminal convictions, securities or antitrust law violations, material civil or
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regulatory fines or judgments against the company or firm which the company or firm shall be
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required to disclose to the office of the general treasurer and the commission as part of the selection
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process.
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(2) The program shall provide education, counseling, and objective employee-specific plan
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advice to participants.
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(3) The program shall include a limited number of investment options that shall include
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either:
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(i) Investment portfolio options that are constructed to reflect different risk profiles such
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as conservative, moderate, and aggressive; and/or
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(ii) Options constructed to reflect different risk profiles that automatically reallocate and
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rebalance contributions as an employee ages. There shall be investment options that prioritize the
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securities of companies that demonstrate good governance; efficient use of environmental
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resources; and thoughtful management of social impact. All investment offerings shall be
approved

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considered
by the state investment commission
no less than once every three (3) years
.
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(b) The Rhode Island secure choice retirement savings program is an instrumentality of the
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state. Any security issued, managed, or invested by the state investment commission within the
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Rhode Island secure choice retirement savings program on behalf of an individual participating
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within the RISavers retirement savings program shall be state income tax deferred for investment
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earnings to include interest, dividends, and capital gains until such time as withdrawal pursuant to
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the terms of this chapter.
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(c) The third-party administrator(s) shall adopt a written statement of investment policy
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that includes a risk management and oversight program. The state investment commission shall
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consider the statement of investment policy
and any changes in the investment policy
at a public
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meeting
no less than once every three (3) years
.
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35-23-9. Employer participation.
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(a) After the office of the general treasurer opens the RISavers retirement savings program
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for enrollment, eligible employers shall have a payroll deposit retirement savings arrangement to
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allow employee participation in the program under the terms and conditions prescribed by the office
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of the general treasurer.
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(b) Within twelve (12) months after the office of the general treasurer opens the program
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for enrollment, eligible employers with more than one hundred (100) eligible employees and that

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do not offer a retirement savings program pursuant to subsection (g) of this section shall have a
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payroll deposit retirement savings arrangement to allow employee participation in the program.
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(c) Within twenty-four (24) months after the office of the general treasurer opens the
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program for enrollment, eligible employers with more than fifty (50) eligible employees and that
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do not offer a retirement savings program pursuant to subsection (g) of this section shall have a
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payroll deposit retirement savings arrangement to allow employee participation in the program.
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(d) Within thirty-six (36) months after the office of the general treasurer opens the program
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for enrollment, all other eligible employers that do not offer a retirement savings program pursuant
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to subsection (g) of this section shall have a payroll deposit retirement savings arrangement to allow
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employee participation in the program.
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(e) The office of the general treasurer, in its discretion, may extend the time limits defined
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in subsections (b) through (d) of this section.
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(f)(1) Each eligible employee shall be enrolled in the program unless the employee elects
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not to participate in the program. An eligible employee may elect to opt out of the program at any
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time by making a notation on the opt-out form.
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(2) Following initial implementation of the program pursuant to this section, at least once
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every year, the office of the general treasurer shall designate an open enrollment period during
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which eligible employees that previously opted-out of the program may enroll in the program.
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(3) An employee who elects to opt out of the program who subsequently elects to
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participate through the employer’s payroll deposit retirement savings arrangement may enroll at
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any time.
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(g)(1) An employer that provides an employer-sponsored retirement plan, such as a defined
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benefit plan or a 401(k), 403(b), 457(b), simplified employee pension (SEP) plan, or savings
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incentive match plan for employees (SIMPLE) plan, or that offers
an automatic enrollment

a
payroll
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deduction IRA, shall be exempt from the requirements of the RISavers retirement savings program,
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if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal
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Revenue Code.
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(2) An employer shall retain the option at all times to set up and offer a tax-qualified
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retirement plan, instead of facilitating employee participation in the RISavers retirement savings
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program.
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(h)(1) Following initial implementation of the program pursuant to this section, and at least
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once every year, the general treasurer shall designate an open enrollment period during which
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optional
employers

employees
may enroll in the program.
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(2) An optional
employer

employee
that enrolls in the program may
elect to opt out of

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withdraw from
the program upon thirty (30) days’ notice provided to
employees

their employer

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and to the office of the general treasurer.
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(i) By regulation, the office of the general treasurer may set a default contribution rate,
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unless otherwise specified by the employee. Employees shall have the ability to change their
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contribution rate at any time with thirty (30) days’ notice provided to the office of the general
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treasurer.
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SECTION 2. Chapter 35-23 of the General Laws entitled "Rhode Island Secure Choice
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Retirement Savings Program Act" is hereby amended by adding thereto the following section:
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35-23-19. Severability.

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The provisions of this chapter are severable, and if any of its provisions shall be held
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unconstitutional or are found to be preempted by federal law or by any court of competent
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jurisdiction, the decision of the court shall not affect or impair any of the remaining provisions.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC FINANCE -- RHODE ISLAND SECURE CHOICE RETIREMENT
SAVINGS PROGRAM ACT
***
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This act would make several technical amendments to the Rhode Island secure choice
2
retirement savings program act necessary for continued administration and inter-state partnership.
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This act would take effect upon passage.
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LC004672
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