RI searching for new retirement account manager
PROVIDENCE, R.I.—Rhode Island is looking for an investment company to manage new 401(k)-style retirement accounts for 30,000 public workers.
To curb runaway pension costs, state lawmakers voted last month to transfer most state workers, teachers and other public workers to a hybrid system combining a traditional pension with a 401(k)-style account.
Democratic state Treasurer Gina Raimondo says Monday the state is now seeking proposals from plan providers interested in administering the new investment accounts.
The State Investment Commission is expected to pick a provider by March.
Employees covered by the new hybrid plan will begin contributing toward the 401(k)-style accounts in July. It's estimated that public workers will contribute as much as $150 million to the accounts annually.