2018 -- H 8235

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LC005746

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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H O U S E   R E S O L U T I O N

CREATING THE RETIREMENT SECURITY COMMISSION TO STUDY AND ASSESS

RETIREMENT SAVINGS OPTIONS FOR RHODE ISLANDERS

     Introduced By: Representatives Williams, and Vella-Wilkinson

     Date Introduced: May 24, 2018

     Referred To: House Finance

     WHEREAS, There is convincing evidence that many Rhode Islanders are not prepared

for, or even aware of, what is needed for a successful retirement, and increased longevity, health

care costs, solvency of the Social Security system, inflation and uncertain long-term care costs

make assessing future retirement needs more challenging than ever before; and

     WHEREAS, A pension plan is a retirement plan that requires an employer to make

contributions into a pool of funds set aside for a worker's future benefit. The pool of funds is

invested on the employee's behalf, and the earnings on the investments generate income to the

worker upon retirement; and

     WHEREAS, Some pension plans require an employer to make or match the worker’s

annual contributions up to a specific percentage or dollar amount, and some plans have a

voluntary investment component that allows a worker to contribute part of their current income

from wages into an investment plan to help fund retirement such as a pay-as-you-go pension plan

or 401(k) plans; and

     WHEREAS, A defined-benefit plan is one in which an employer guarantees that the

employee receives a definite amount of benefit upon retirement, regardless of the performance of

the underlying investment pool. The employer is liable for a specific flow of pension payments to

the retiree (the dollar amount is determined by a formula, usually based on earnings and years of

service), and if the assets in the pension plan are not sufficient to pay the benefits, the company is

liable for the remainder of the payment; and

     WHEREAS, American employer-sponsored pension plans date from the 1870s, and at

their height, in the 1980s, they covered nearly half of all private sector workers. Today, about 90

percent of public employees, and roughly only 10 percent of private employees, are covered by a

defined-benefit plan; and

     WHEREAS, Because of the lack of a set pension plan for many Rhode Islanders and/or

the lack of understanding of the various plans available, it is essential to the financial security and

well-being of the state's citizenry that the variety of options for establishing and making

contributions to a retirement financial plan are clearly defined, readily accessible, fully

understood, and provide potential coverage for all; now, therefore be it

     RESOLVED, That a special legislative commission be and the same is hereby created

consisting of thirteen (13) members: three (3) of whom shall be members of the House of

Representatives, not more than two (2) from the same political party, to be appointed by the

Speaker of the House; one of whom shall be a licensed securities broker from a national

investment firm, to be appointed by the Speaker of the House; one of whom shall be the Rhode

Island General Treasurer, or designee; one of whom shall be the Director of the Rhode Island

Department of Labor and Training, or designee; one of whom shall be the Rhode Island Secretary

of State, or designee; one of whom shall be the Director of the Rhode Island Department of

Revenue, or designee; one of whom shall be Executive Director of the Rhode Island Public

Expenditure Council (RIPEC), or designee; one of whom shall be the President of the R.I. AFL-

CIO, or designee; one of whom shall be a certified financial planner, to be appointed by the

Speaker of the House; and two (2) of whom shall be executives from financial organizations

doing business in Rhode Island, to be appointed by the Speaker.

     In lieu of any appointment of a member of the legislature to a permanent advisory

commission, a legislative study commission, or any commission created by a General Assembly

resolution, the appointing authority may appoint a member of the general public to serve in lieu

of a legislator; provided that, the majority leader or the minority leader of the political party

which is entitled to the appointment consent to the member of the general public.

     The purpose of said Retirement Security Commission shall be to study all currently

available retirement plans for both public and private sector employees, including, but not be

limited to:

     (1) Measurements for the general retirement readiness of both public and private sector

employees in Rhode Islanders;

     (2) Accessibility of plans;

     (3) Availability of options;

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     (4) Viability of current options;

     (5) Retirement plan enrollment processes;

     (6) Eligibility or mandatory qualifications for employers and employees;

     (7) Financial impact on businesses and state;

     (8) Potential new retirement plan options; and

     (9) Development of a program to raise awareness for the need and understanding of

options.

     Forthwith upon passage of this resolution, the members of the commission shall meet at

the call of the Speaker of the House and organize and shall select, from among the legislators, a

chairperson.

     Vacancies in said commission shall be filled in like manner as the original appointment.

     The membership of said commission shall receive no compensation for their services.

     All departments and agencies of the state shall furnish such advice and information,

documentary and otherwise, to said commission and its agents as is deemed necessary or

desirable by the commission to facilitate the purposes of this resolution.

     The Speaker of the House is hereby authorized and directed to provide suitable quarters

for said commission; and be it further

     RESOLVED, That the commission shall report its findings and recommendations to the

General Assembly no later than May 15, 2019, and said commission shall expire on January 15,

2020.

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LC005746

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