RISavers, a state-facilitated auto-IRA program is signed into law by Governor McKee on June 26, 2024. This law will make available a payroll deduction IRA for individuals employed by employers who do not otherwise offer a retirement plan. The law applies to employers employing 5 or more employees.
Eligible employee means an individual 18 years or older who is employed by an employer and has been employed for a period of not less than 120 days. An eligible employe shall be automatically enrolled in the payroll deduction IRA with the opportunity to opt out. The default contribution rate will be set by the Office of the General Treasurer. Eligible employees shall have the ability to change his/her contribution rate at any time with 30 days’ notice to the Office of the General Treasurer.
The Office of the General Treasurer will design, develop, implement, maintain, and oversee RISavers. The Office of the General Treasurer will determine when the RISavers program opens. Employers will begin to enroll eligible employees in the program as follows:
- Within 12 months of the program opening, employers with 100 or more eligible employees,
- Within 24 months of the program opening, employers with 50 or more eligible employees, and
- Within 36 months of the program opening, all other employers with eligible employees.
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