Title 35
Public Finance

Chapter 23
Rhode Island Secure Choice Retirement Savings Program Act

§ 35-23-4. Investments.

(a) The office of the general treasurer may select an appropriate third-party administrator(s) for the program and shall adopt such plan, trust, and/or custodial documents, with such features and attributes as the office of the general treasurer determines necessary or advisable in its discretion to effectuate the provisions of this chapter in accordance with the following:

(1) The office of the general treasurer may select one or more firm(s) or company(ies) to provide retirement program investments, program administration, and communication services to employees who participate in the retirement savings program. The program shall provide for appropriate long-term retirement-oriented investments and shall include investment options as determined by the state investment commission. In determining the firm(s) or the company(ies) to provide these services, the office of the general treasurer shall consider the following:

(i) The financial stability of the company or firm;

(ii) The cost of the investments, program administration, and services to the members;

(iii) The experience of the company or firm in administering retirement savings plans;

(iv) The experience of the company or firm in providing education, counseling, and advice to participants of retirement savings plans; and

(v) Any criminal convictions, securities or antitrust law violations, material civil or regulatory fines or judgments against the company or firm which the company or firm shall be required to disclose to the office of the general treasurer and the commission as part of the selection process.

(2) The program shall provide education, counseling, and objective employee-specific plan advice to participants.

(3) The program shall include a limited number of investment options that shall include either:

(i) Investment portfolio options that are constructed to reflect different risk profiles such as conservative, moderate, and aggressive; and/or

(ii) Options constructed to reflect different risk profiles that automatically reallocate and rebalance contributions as an employee ages. There shall be investment options that prioritize the securities of companies that demonstrate good governance; efficient use of environmental resources; and thoughtful management of social impact. All investment offerings shall be approved by the state investment commission.

(b) The Rhode Island secure choice retirement savings program is an instrumentality of the state. Any security issued, managed, or invested by the state investment commission within the Rhode Island secure choice retirement savings program on behalf of an individual participating within the RISavers retirement savings program shall be state income tax deferred for investment earnings to include interest, dividends, and capital gains until such time as withdrawal pursuant to the terms of this chapter.

(c) The third-party administrator(s) shall adopt a written statement of investment policy that includes a risk management and oversight program. The state investment commission shall consider the statement of investment policy and any changes in the investment policy at a public meeting.