Urging State Agencies to Expand Access to Retirement Advice and Guidance for Rhode Island State Employees to Ensure a Secure and Dignified Retirement

WHEREAS, The State of Rhode Island has established a hybrid retirement system combining guaranteed lifetime income through a defined benefit component with the individual control and portability of the defined contribution guaranteed lifetime income component; and

WHEREAS, The challenge of managing both defined benefit and defined contribution elements requires employees to make critical decisions throughout their careers that significantly impact their ultimate retirement security; and

WHEREAS, TIAA Institute research demonstrates that retirees need predictable income to maintain their quality of life in retirement, and the retirement industry has established an percent pre-retirement income replacement rate as the reliable benchmark for measuring whether a retirement plan is poised to deliver a consistent standard of living and a confident retirement, particularly as today's retirees face the reality of longer lifespans with potential retirement periods extending to age 95 or beyond; and

WHEREAS, Professional retirement advice provides benefits across all career stages, helping younger workers harness compound interest, mid-career workers adjust plans after life events, and pre-retirement workers understand withdrawal strategies and tax implications; and

WHEREAS, State government has both the opportunity and responsibility to lead by example by facilitating access to professional retirement advice for state employees, demonstrating commitment to the long-term financial well-being of those who serve the public; now, therefore be it

RESOLVED, That this Senate of the State of Rhode Island hereby recognizes the critical importance of professional retirement advice and urges all state agencies to develop or expand comprehensive employee retirement advice and guidance programs that include regular workshops, access to one-on-one certified financial counseling, clear decision-support tools, and multiple communication channels; and be it further

RESOLVED, That this Senate hereby encourages state agencies to prioritize advice access for employee populations facing greater retirement preparation challenges; and be it further

RESOLVED, That this Senate hereby recommends state retirement system administrators partner with qualified financial advice providers to ensure employees receive holistic guidance addressing the full scope and benefits of their retirement plans; and be it further

RESOLVED, That this Senate hereby encourages employees to consult with the state retirement plan and/or state sanctioned financial advisor to assess if they are on track to receive 80 percent of their pre-retirement income when retired; and be it further

RESOLVED, That this Senate hereby encourages the integration of technology-assisted advice tools in coordination with human financial advisors; and be it further

RESOLVED, That this Senate hereby recommends state agencies measure and report on employee engagement and outcomes with retirement advice programs; and be it further

RESOLVED, That this Senate hereby recognizes that maximizing employee retirement outcomes requires ensuring employees understand their plans, make informed decisions throughout their careers, and receive the continued professional guidance needed to achieve a secure and dignified retirement; and be it further

RESOLVED, That the Secretary of State be and hereby is authorized and directed to transmit duly certified copies of this resolution to Governor Dan McKee, General Treasurer James Diossa, and Andrew Roos, Executive Director of the Employees' Retirement System of Rhode Island (ERSRI).