Story perspectives

Rhode Island's 401(a) Plan: High Costs, Low Returns Exposed

9/21/2025

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Summary

Story summary

Jason Allaire, a Rhode Island public employee, learned he cannot access his 401(a) retirement funds until he retires.
The Rhode Island 401(a) plan, managed by TIAA, aims to support underfunded public pensions.
Participants are automatically enrolled in a costly TIAA annuity, which yields lower returns.
In 2023, the state removed the low-cost Vanguard option, raising participant costs.
Ongoing investigations in several states examine TIAA's practices of directing clients to high-cost products, leading to millions in fees and concerns about transparency.

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Story summary

Jason Allaire, a Rhode Island public employee, learned he cannot access his 401(a) retirement funds until he retires.
The Rhode Island 401(a) plan, managed by TIAA, aims to support underfunded public pensions.
Participants are automatically enrolled in a costly TIAA annuity, which yields lower returns.
In 2023, the state removed the low-cost Vanguard option, raising participant costs.
Ongoing investigations in several states examine TIAA's practices of directing clients to high-cost products, leading to millions in fees and concerns about transparency.