Tag Archives for Rep. Evan P. Shanley

Rhode Island moves to assist in planning for retirement with Secure Choice

Published in RINewsToday on July 9, 2024

An AARP study recently released tells us that it’s not easy being in your 50s and not having planned for your retirement. According to the study’s findings, 20% of adults ages 50+ have no retirement savings, and more than half (61%) are worried they will not have enough money to support them in retirement. The survey’s findings indicate a decline in the overall sense of financial security among men, 42% of whom describe their financial situation as “fair” or “poor,” up from 34% in the beginning of 2022. However, roughly 40% of men who are regularly saving for retirement believe they are saving enough, compared to just 30% of women.

Retirement not an option for many

“Every adult in America deserves to retire with dignity and financial security. Yet far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” said Indira Venkateswaran, AARP Senior Vice President of Research in an April 24 statement announcing the findings of the retirement survey. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire,” says Venkateswaran.

Credit card debt is out of control, say the researchers. Nearly one-third (30%) of older adults who carry over a credit card balance from month-to-month report carrying a balance of $10K or more, while 12% described their balance as $20K or more, up from 8% roughly a year ago, they say.

Despite this, 33% of respondents ages 50+ believe their finances will be better 12 months from now, but the lingering effects of inflation and high costs are still apparent to them.

More than one-third (37%) of the respondents worry about covering basic expenses, such as food and housing. More than 26% worry about covering family caregiving costs. The survey’s findings indicate that seven in 10 (70%) worry about prices rising faster than their income. Over 26 % of people who are not yet retired say they expect to never retire.  No rocking chairs on the porch or travel for these individuals.

Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer, warns that the nation faces a “serious retirement crisis.”  She says, “AARP has a long history of supporting legislation to expand access to retirement savings, but Congress must act more swiftly to provide the financial support older Americans need and deserve.”

Congress is currently considering different pieces of legislation that would expand retirement security, including the bipartisan Retirement Savings for Americans Act of 2023, which would provide retirement savings accounts to eligible workers without employer-sponsored retirement plans, and the Automatic IRA Act of 2024. 

LeaMond says that AARP has successfully worked with 19 states to create state programs to make it easier for people whose employers don’t offer a retirement plan to be able to save for their future. “But about two-thirds of states have yet to act, and we await action from the federal government,” says LeaMond.

Americans are 15 times more likely to save for retirement when they have access to a workplace plan. Yet nearly 57 million seniors do not have access to a retirement plan at work, according to AARP. Eight states have auto-IRA programs up and running: California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon, and Virginia, while Massachusetts has a multiple employer plan in place. Ten other states have passed legislation and are at various stages of implementation, including Washington, where auto-IRA legislation was signed into law last month.  

Rhode Island now joins the ranks, offering auto-IRA programs

Over two months after the release of AARP’s retirement study, on June 27, with Gov. Dan McKee signing legislation (S 2045 aa, H 7127 aa), Rhode Island joins 19 other states in enacting legislation to help private-sector workers save for retirement through their jobs.

Rhode Island’s retirement legislation was introduced by Sen. Meghan Kallman (Dist. 15, Providence, Pawtucket) and Rep. Evan P. Shanley (Dist. 24, Warwick).

Among the biggest beneficiaries of the auto-IRA programs are small businesses and their employees. Approximately 70% of workers at companies with fewer than ten employees have no access to retirement savings through work.

“Most of us will reach an age when we will want to stop working, however, for thousands of workers in Rhode Islander this is not an option because they do not have money set aside for retirement,” said Kallman. “Secure Choice is a convenient, portable, voluntary IRA managed by the state that works directly through workers’ jobs; essentially a public-option IRA for those whose employers do not offer one,” she says.

Adds Shanley, “When I talk to small businesses in my community, they really care about their staff and want their workers to be able to save for retirement. But small business owners can’t be experts in everything and often don’t know where to start with offering retirement savings. This bill gives them a way to support their workers and gives workers a chance to save,” he said.

“Hardworking Rhode Islanders deserve to retire with dignity and that is why we are thrilled to celebrate the passage of Secure Choice,” said Catherine Taylor, AARP Rhode Island state director.

“The bill passed with strong bipartisan support after four years of AARP advocacy,” adds Matthew Netto, AARP Rhode Island advocacy director. The state is eyeing a 2026 launch of the program, which is still in the planning stages.

The Secure Choice Program would create a state sponsored retirement savings program (Auto-IRA) that will be accessible to the over 172,000 private sector employees in Rhode Island that do not have access to a plan through their employer.

Secure Choice is designed to be no cost and liability free for businesses. Employees would be automatically enrolled with the ability to opt out anytime. The savings would belong to the employee – they would be able to choose how much to contribute via automatic payroll deduction and take it with them from job to job.

The Rhode Island Secure Choice Retirement Savings Program, the state’s auto-IRA plan administered by the office of the General Treasurer, would see retirement savings accumulated in individual accounts for the exclusive benefit of the participants or their beneficiaries. Private employees who do not already offer a retirement plan would be required to offer workers access to the Secure Choice program.

Secure Choice a great investment for Rhode Island

Under the enacted legislation, Rhode Island General Treasurer James A. Diossa, would be charged with administering contributions through payroll deductions and investing these funds in accordance with best practice for retirement savings vehicles. The act would become effective for all eligible employers within 36 months of the opening of the program enrollment following a phased implementation period.

“The Secure Choice Act is a great investment in Rhode Island families,” said Diossa. “For too long, more than 40% of private sector employees in the state have lacked the assurance of adequate retirement savings. Secure Choice will help transform the retirement landscape by offering the opportunity to prepare for retirement,” he says.

Said Kristina Contreras Fox, director of policy and advocacy at the Rhode Island Black Business Association, “The Rhode Island Black Business Association is thrilled to see our General Assembly take bold action in supporting robust small business growth and closing the racial wealth gap by passing the Secure Choice Retirement Savings Act. “Small business owners have advocated for years in support of this legislation since it will help them recruit talented workers looking for good jobs not only with a living wage but also strong benefits,” she said, noting that for minority entrepreneurs, the passage of this bill also brings an added measure of support for their families.

AARP has a tool that can help calculate how much you will need in retirement with a personalized snapshot.  Go to https://www.aarp.org/membership/benefits/finance/retirement-calculator/

AARP Rhode Island pushes its 2024 legislative agenda

Published in RINewsToday on February 12, 2024

Standing in front of an AARP backdrop in the Rhode Island State Room at the State House, last week AARP Rhode Island hosted a 34 plus minute press conference plugging the “aging” group’s 2024 legislative agenda. The nonprofit organization, representing 125,000 members, unveiled its four priority issues: to increase temporary care giver insurance to caregivers, to boost the availability of Accessory Dwelling Units (ADUs); to create a program to allow employees to save for retirement; and to eliminate the state’s income tax on Social Security. 

Gov. Dan McKee, House Speaker K. Joseph Shekarchi (D-Dist. 13, Warwick), Senate Majority Leader Ryan W. Pearson (D-Dist. 19, Cumberland, Lincoln), State Treasurer James Diossa, came to support AARPs efforts advocacy efforts, backing its four priority legislative issues. 

“AARP’s mission is to empower people to choose how they live as they age,” said State Director Catherine Taylor, in her opening remarks.  At the event, she called on lawmakers to pass AARP Rhode Island’s legislative agenda. 

Taylor took this opportunity to share the results of the 2023 AARP Rhode Island Vital Voices survey that reveals that Rhode Island residents age 45+ overwhelmingly would choose to remain in their own communities and own homes as they grow older. “In order for this to be a reality, Rhode Islanders must have financial security in retirement, affordable and accessible housing options, and access to resources that enable them to take care of those they love,” she said. 

Let us take a look at AARP Rhode Island’s legislative priorities for this year.

Boosting the State’s Housing Production 

With the strong support of House Speaker K. Joseph Shekarchi (D-Dist. 13, Warwick), one of nine Democratic cosponsors of H. 7062, it is expected that House leadership will send the approved committee bill to the floor this week for a vote. The legislative proposal would boost the state’s housing production by allowing a homeowner to develop Accessory Dwelling Units (ADUs) on their property.

ADUs, sometimes referred to as in-law apartments or granny flats, backyard cottages, or secondary units, allow seniors to downsize enabling them to live independently and age in place in their communities. The bill was written in collaboration with AARP Rhode Island, and is one of the aging group’s primary legislative policy goals. 

H. 7062, introduced by Rep. June S. Speakman (D -Dist. 68, Bristol/Warren), chairwoman of the House Commission on Housing Affordability, would boost the state’s housing production by making it easier for homeowners to develop ADUs on their property. It would give the property owner the right to develop an ADU within the existing footprint of their structures or on any lot larger than 20,000 square feet, provided that the design complies with local building code, size limits and infrastructure requirements. 

Sen. Victoria Gu (D-District 38, Westerly, Charlestown, South Kingstown) will shortly submit a Senate ADU companion proposal but has yet to drop it into the legislative hopper. One Senator noted that there will be technical differences between the House and Senate ADU proposals which will have to be ironed out. 

Assisting employees to save for retirement – Secure Choice

Rep. Evan P. Shanley (D-Dist. 24, Warwick, East Greenwich), throws H 7121, The Rhode Island Secure Choice Retirement Savings Program, into the legislative hopper. The bill would establish a convenient, low-cost voluntary retirement savings plan for working Rhode Islanders.

According to AARP Rhode Island, about 40 percent of Rhode Island private sector workers, about 172,000, ages 18 to 64 in 2020 were employed by businesses that do not offer any type of retirement plan.

The retirement savings program, administered by the office of the General Treasurer, would see retirement savings accumulated in individual accounts for the exclusive benefit of the participants or their beneficiaries. The bill would see no fiscal impact on the state’s budget.

H 7121 has been referred to the House Finance Committee for consideration. A companion measure (S 2045) has been introduced in the Senate by Sen. Meghan E. Kallman (D-Dist. 15, Pawtucket, Providence).

Under Shanley’s legislative proposal, the General Treasurer, who serves as the custodian of state funds for the Rhode Island government, would be charged with collecting contributions through payroll deductions and investing these funds in accordance with accounting best practices for retirement saving vehicles. The elected official would also be responsible for setting minimum and maximum contribution levels in accordance with contribution limits set for IRAs by the Internal Revenue Code. The law would become effective for ALL eligible employers within 3 months of the opening of the program enrollment following a phased implementation period. 

Caring for Caregivers

Senate Majority Whip Valarie Lawson (D-Dist. 14, East Providence) and Rep. Joshua J. Giraldo (D-Dist. 56, Central Falls) have introduced identical bills in their chambers that would expand Rhode Island’s Temporary Caregiver Insurance (TCI) program from six weeks to 12. It also increases weekly dependent’s allowances from $10 to $ 20 or 7% increase of benefit rate whichever is greater. That would bring the Ocean State in line with other states and allow new parents more time for parental leave and caregivers more time to care for a critically ill family member.

S 2121 and its House companion measure, H 7171, would also expand the definition of critically ill family to include grandchildren, siblings and “care  recipients,” defined as individuals for whom the employee is a primary caregiver.

According to AARP Rhode Island, the state’s unpaid family caregiver labor force totals 121,000, providing 113 million care hours per year.

The United States is one of only six countries in the world, and the only wealthy country, without guaranteed parental leave, according to the Bipartisan Policy Center. In recent years some states, like Rhode Island, have stepped up to offer their own programs.

According to a statement released announcing the introduction of S 2121, Rhode Island became the third state in the nation to offer paid parental leave in 2013 when legislators created the TCI program. TCI, which is paid for through payroll deductions, allows new parents to take six weeks of paid leave to bond with and care for their child. It also allows individuals to take this time to care for a seriously family member. That can prove vital for a working adult who needs to care for their spouse after a surgery or a terminally ill parent.

Since 2013, however, many other states have surpassed Rhode Island’s leave offerings. Currently, 11 states and the District of Columbia offer paid parental leave, with two additional states set to offer it beginning in 2026. Most offer 12 weeks, while Rhode Island offers the least amount of time at just six weeks, says the statement.

Finally, it was noted that individuals on TCI in Rhode Island receive 60% of their normal salary. Of the ten states that offer similar programs, most workers receive at least 80%. In Massachusetts, workers receive 80% of their salary for 12 weeks. Workers in nearby Connecticut receive 95% of their salary for 12 weeks.

Cutting Taxes 

According to AARP Rhode Island, more than one in five Rhode Island residents, that’s 230,018, receive Social Security benefits.  These payments inject more than $ 4 billion into the state’s economy every year.

But Rhode Island is one of 9 states that tax Social Security beneficiaries, says AARP Rhode Island. The state tax on Social Security undermines the purpose of the retirement program, charges the state’s largest aging group, estimating that this program has lifted 50,000 Rhode Islanders 65 or older out of poverty from 2018 through 2020.

Three Senate bills and one House bill have been introduced so far.   

S 2061, introduced by Deputy Minority Whip Sen. Elaine J. Morgan (R-Dist. 34, Charlestown, Exeter, Hopkinton, Richmond, West Greenwich), identical to a bill introduced last year, aside from the effective date would allow a modification to federal adjusted gross income for all Social Security income for tax years beginning on or after January 1, 2025.

Sen. Mark P. McKenney (D-Dist. 30, Warwick) has introduced S 2158 and House Deputy Majority Whip Mia A. Ackerman (D-Dist. 45, Cumberland, Lincoln) just submitted H 7588. These identical bills would gradually phase in modifications to the federal adjusted gross income over a four-year period for Social Security income, from 25% up to 100%, beginning on or after January 1, 2025.

And, Sen. Walter S. Felag, Jr. (D-Dist. 30, Bristol Tiverton Warren) legislation, S 2058, would increase the federal adjusted gross income threshold for modification for taxable social security income. This act would also amend references to the federal adjusted gross income as it pertains to modification of taxable retirement income from certain pension plans or annuities.

To watch AARP RI’s legislation reception, held Feb. 8, 2024l, go to https://capitoltvri.cablecast.tv/show/214?site=1.

For obtain the results of the 2023 AARP Rhode Island Vital Voices survey, go to:

https://www.aarp.org/research/topics/life/info-2022/aarp-vital-voices-surveys-older-adults-2022-2024.html – and scroll down to “Rhode Island”

Bills Passed to Assist Rhode Island’s Seniors, Disabled

Printed in the Woonsocket Call on July 7, 2019

With the dust settling after the adjournment of the Rhode Island General Assembly’s 2019 legislative session on June 30, 2019, Rhode Island Governor Gina Raimondo halfheartedly signed the state’s 2020 fiscal year $9.9 billion budget into law.

The newly enacted budget closes a $100 million budget gap while avoiding new taxes for businesses, fully funding the state’s education aid formula, continuing to phase-out the car-tax, maintaining fiscal support for municipalities. And, State lawmakers did not forget older Rhode Islanders and disabled persons, putting tax dollars into programs assisting them.

Included in the state budget signed by Raimondo is $499,397 to fund the Rhode Island Livable Home Modification Grant Act that was introduced by Rep. Joseph M. McNamara, D-Warwick, Cranston and Sen. Walter S. Felag Jr., D -Bristol, Tiverton, Warren.

The grant allows eligible homeowners and renters to retrofit their residence to nationally recognized accessibility standards and receive 50 percent of the total sum spent, up to $5,000, to retrofit their existing residence.

The intent of this state program is to assist older Rhode Islanders and disabled persons to stay safely in their homes longer rather than being admitted to costly nursing homes, which costs taxpayers millions of dollars each year in Medicaid costs. With the graying of state’s population, there is a need for housing that is safe and adapted to the needs of their older occupants. (The Livable Home Modification Grant Application and Post-Retrofit Claim form can be found at http://www.gcd.ri.gov.)

Meanwhile, aging advocates gave the thumbs-up to Rhode Island lawmakers who eliminated a sunset provision in the state budget for a program that provides fare-free bus passes to low-income seniors and elderly Rhode Islanders, making this program permanent.

Awaiting the Governor’s Signature

The General Assembly passed legislation (S 0691A, H 6219), introduced by Senator Frank S. Lombardi, D-Cranston and Rep. Evan P. Shanley, D-Warwick, that would help caregivers to build onto their houses to provide space for relatives. The measure now moves to the governor’s office for consideration.

The passed legislation expands the definition of “family member” for purposes of zoning ordinances to include child, parent, spouse, mother-in-law, father-in-law, grandparents, grandchildren, domestic partner, sibling, care recipient or member of the household.

Under the legislation, the appearance of the home would remain that of a single-family residence with an internal means of egress between the home and the accessory family dwelling unit. If possible, no additional exterior entrances would be added. Where additional entrance is required, placement would generally be in the rear or side of the structure.

This legislative session, State lawmakers also approved legislation sponsored by Sen. Adam J. Satchell D- West Warwick and Rep. Robert E. Craven, D- North Kingstown, to establish a formal process recognizing “supported decision making,” a structure of support for disabled or aging individuals.

The legislation, which now heads to the governor’s desk, establishes a system of personal support that is less restrictive than guardianship to help individuals maintain independence while receiving assistance in making and communicating important life decisions. It is aimed at providing an alternative with more self-determination for individuals who are aging or who have developmental or intellectual disabilities.

Under the bill (2019-S 0031A, 2019- H5909), Rhode Islanders would be able to designate another person, or a team of people, as a supporter who would help them gather and weigh information, options, responsibilities and consequences of their life decisions about their personal affairs, support services, medical or psychological treatment, education and more. The supporter would also help the individual communicate the person’s wishes to those who need to know.

The legislation creates a legal form that establishes the agreement between individuals and their supporters, and designates the types of decisions with which the supporter is authorized to help. The bill establishes that decisions made with support under such an agreement are legally valid, and allows supporters to assist with the accessing of an individual’s confidential health and educational records.

It also requires that any other person who is aware that an individual is being abused, neglected or exploited by their supporter is obligated to report that abuse to the proper authorities.

Protecting Rhode Island’s Seniors and Disabled from Financial Exploitation

Sen. Valarie J. Lawson, D-East Providence and Rep. Joe Serodio’s D-East Providence, legislation (2019-0433A, 2019-H 6091A), “Senior Savings Protection Act,” was passed by the General Assembly and now heads to the Governor’s desk for signature.

The act would require certain individuals to report the occurrence or suspected occurrence of financial exploitation of persons who are age 60 and over or those with a disability between the ages of 18 and 59 years old.

According to the legislation, if a qualified individual, a person associated with a broker-dealer who serves in a supervisory, compliance or legal capacity, believes that financial exploitation is taking place, or being attempted, the individual must notify Rhode Island’s Department of Business Regulation and Division of Elderly Affairs, and law enforcement. The individual may also alert immediate family members, legal guardians, conservators, or agents under a power of attorney of the person possibly being financially exploited.

The legislation also calls for the Department of business Regulation and the Division of Elderly Affairs to develop websites that include training resources to assist in the prevention and detection of financial exploitation against Rhode Island’s seniors and disabled.

Combating Alzheimer’s Disease

With the number of persons with Alzheimer’s Disease expected to increase in the coming years, the General Assembly approved bills to better support Rhode Islanders affected by debilitating mental disorder and to protect against elder abuse. There are an estimated 23,000 Rhode Islanders age 65 and older living with Alzheimer’s disease. In just six years, the number is expected to increase to 27,000.

The Rhode Island General Assembly approved legislation (S 20223, 2019-H 5178) sponsored Sen. Cynthia A.Coyne, D-Barrington, Bristol, East Providence, and House Majority Leader K. Joseph Shekarchi, D-Warwick, to establish a program within the Department of Health dedicated to Alzheimer’s disease, and create a 13-member advisory council that would provide policy recommendations, evaluate state-funded efforts for care and research and provide guidance to state officials on advancements in treatment, prevention and diagnosis. The bill is based on legislation signed into law last year in Massachusetts.

The legislation requires the Department of Health to assess all state programs related to Alzheimer’s, and maintain and annually update the state’s plan for Alzheimer’s disease. It would also require the Department of Health to establish an Alzheimer’s disease assessment protocol specifically focused on recognizing the signs and symptoms of cognitive impairments, and appropriate resource information for effective medical screening, investigation and service planning. The legislation would also require caseworkers working with the Department of Elderly Affairs to become familiar with those protocols. Additionally, the legislation would require a one-time, hourlong training on diagnosis, treatment and care of patients with cognitive impairments for all physicians and nurses licensed in the state.

Most importantly, adoption of the legislation would enable Rhode Island to qualify for federal funding that is available to help states with their efforts to support those with Alzheimer’s disease.

Also gaining final Rhode Island General Assembly approval was legislation (2019-S 0302A, 2019-H 5141) sponsored by Sen. Coyne and Rep. Joseph M. McNamara, D-Warwick, Cranston, to allow the spouses or partners of patients residing in Alzheimer’s or dementia special care unit or program to live with them, even if they do not meet the requirements as patients-themselves.

Finally, Sen. Coyne, who lead the Senate’s Special Task Force to Study Elderly Abuse and Financial Exploitation, successfully spearheaded an effort this session to pass legislative proposals to beef up the state’s efforts to combat elder abuse, that is growing and vastly under reported. For details, go to herbweiss.wordpress.com, to access the June 30 commentary, “Senate Task Force Calls for Action to Combat State’s Growing Elder Abuse.”