On July 3, 2024
Local News

Colorado and Vermont enter partnership for retirement savings

The partnership puts Vermont Saves on track to launch by the end of 2024

Last week, June 26, the Colorado SecureSavings Program announced a partnership with Vermont’s public retirement program, Vermont Saves. The new partnership adds Vermont to the Partnership for a Dignified Retirement, an interstate consortium including Delaware and Maine. With more assets and accounts under management, the consortium will increase returns through economies of scale and reduce costs for savers, according to the news release. The partnership will also enable Vermont Saves to launch faster than anticipated, with an expected launch by the end of 2024.

The partnership sets Vermont on track to become the fastest state to launch a public retirement program. 

“This partnership, the third in the Partnership for a Dignified Retirement, leads the way for more savers to have access to a retirement program through their employer. In addition to ensuring that more workers can retire with dignity, the expansion of this program strengthens our economy and saves states money in the long-term. We look forward to partnering with the great state of Vermont and to continuing to find new opportunities to work with other states to expand this critical program,” said Dave Young, Colorado state treasurer.

The partnership sets Vermont on track to become the fastest state to launch a public retirement program. From the legislation’s enactment in June 2023 to the anticipated launch in late 2024, Vermont State Treasurer Treasurer Pieciak is working hard to launch the program in his first term. 

“Many Vermont workers who lack access to a workplace retirement plan aren’t saving a penny for retirement. By partnering with Colorado, our office will be able to launch Vermont Saves sooner than expected, providing a retirement plan to thousands of Vermont workers, benefiting our economy, and taking pressure off our state budget over time. I’m grateful for Treasurer Young’s partnership, which will help lower costs and achieve the best possible outcomes for businesses and individuals enrolled in the program. Our partnership shows that states can make significant progress for their constituents when they work together,” said Pieciak.

“Too many workers lack access to retirement savings opportunities. Partnering with Vermont continues to build on a proven solution to close the savings gap,” said Hunter Railey, Colorado SecureSavings Program Director.

“Our goal is to increase the number of Vermonters saving for retirement, and partnering with Colorado is a critical step forward in launching Vermont Saves and helping thousands of Vermonters retire with dignity. We look forward to working with stakeholders to design and develop a program that best serves Vermont’s businesses and employees, ” said Becky Wasserman, director of economic empowerment at the Vermont State Treasurer’s Office.

“Many Vermont workers who lack access to a workplace retirement plan aren’t saving a penny for retirement,” said Pieciak.

In addition to partnering with Vermont, Colorado has partnered with Maine and Delaware, forming the Partnership for a Dignified Retirement, an interstate consortium of state-run auto-IRA retirement savings programs. The partnership provides a proven avenue for smaller states like Vermont to offer a cost-friendly public retirement program for workers who don’t have access to a retirement savings plan. Vestwell, in partnership with BNY Mellon, serves as the program administrator, providing recordkeeping, custodial, and administrative services to employers and employees in participating partner states.

Before the Vermont Saves program opens fully, the Vermont State Treasurer’s Office will launch a pilot program in October 2024 involving businesses from various industries and regions across the state. Delaware recently launched the Delaware Earns pilot project with nearly a dozen employers, in anticipation of opening the program fully on July 1. Six months after launching the Maine Retirement Investment Trust, Maine’s public retirement program has enrolled nearly 1,500 employers with employees making up over 4,500 funded accounts totaling over $1 million in savings.

“Partnership between states has proven to be a successful and expedient path for launching auto-IRA programs,” said Douglas Magnolia, president of Vestwell State Savings. “We welcome Vermont to the growing group of states expanding access to retirement savings and look forward to launching Vermont Saves to improve retirement security for workers in the Green Mountain State.”

As of June 2024, 16 states have enacted auto-IRA programs for private sector workers who lack a workplace retirement plan. Analysis has shown that 70% to 75% of eligible employees participate in state-run retirement programs with average annual contributions of approximately $2,000.

For more information on the SecureSavings program, visit: coloradosecuresavings.com or vermonttreasurer.gov/vt-saves.

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