Today, the Colorado SecureSavings Program announced that the investment managers for the state’s new auto-enroll IRA retirement savings program will be BlackRock and State Street Global Advisors.
“Everyone deserves a dignified and sustainable retirement. Today is the start of an exciting, new chapter for Colorado workers. Soon, employees across the state will be able to take their first steps in closing their retirement gap, while accessing the best and brightest in the investment management space,” said Dave Young, Colorado State Treasurer.
“Coloradans will reap the financial rewards from having BlackRock and State Street Global Advisors manage their retirement portfolios”
Hunter Railey, Director, Colorado SecureSavings
“Coloradans will reap the financial rewards from having BlackRock and State Street Global Advisors manage their retirement portfolios,” added Hunter Railey, Director, Colorado SecureSavings Program. “We’re thrilled to have these international innovators join our team.”
Research conducted by the Colorado Department of the Treasury shows that over 1 million workers across the state—40% of the private-sector workforce—lack access to workplace retirement savings plans. The Colorado SecureSavings Program provides a simple retirement solution to private-sector employers at no cost.
“Providing access to a retirement plan is a critical step to helping more people build long-term financial well-being,” said Anne Ackerley, Head of Retirement at BlackRock. “We look forward to serving the great state of Colorado through this innovative partnership, and we’re proud to help more Coloradans retire with dignity on their own terms.”
“We’re honored to be selected as a partner in the Colorado SecureSavings Program.” said David Ireland, Head of Americas Institutional and Global Defined Contribution at State Street Global Advisors. “Millions of working Americans are still without access to an employer-sponsored retirement savings plan and this important initiative will help Coloradans across the state save for a more secure future.”
Private sector workers, including those who work part-time, are self-employed or seasonal, will have an easy way to save for their future. This means that gig economy workers—such as drivers for Uber Eats—will be able to plan for a dignified retirement. A self-employed graphic designer can easily enroll in an auto IRA. Ski instructors who work seasonally will have an option to save for retirement. Farm workers who are not offered a 401k option will be able to save and plan for their future.
Instead of being tied to the employer like in a traditional retirement plan, the SecureSavings Program will be tied to and travel with the employee if and when they move to a different job. So, if a hairdresser moves from Greeley to Fort Collins, the retirement plan travels with them. No more messy paperwork to roll over or combine retirement plans.
This allows small- and medium-sized businesses to be competitive with a full benefits compensation package. Employers will have the option of sponsoring their own plans, or simply enrolling in the Colorado SecureSavings Program.
In October, the Colorado SecureSavings Program is scheduled to launch a pilot program with businesses and employees from across the state participating. Implementation will begin in January 2023.
In April of this year, Vestwell was selected as the program administrator, supporting Treasury staff in finalizing the program design, implementation, and ongoing administration of retirement accounts for savers across the state.
In November of 2021, the Colorado SecureSavings Program and New Mexico Work and $ave signed a first-in-the-country Memorandum of Cooperation (MoC) to pursue a formalized partnership agreement for their auto-enroll IRA programs.
SEE ALSO:
• Another State Signs Government-Sponsored Retirement Plan into Law
• Vestwell to Power Colorado-New Mexico Auto-IRA Program
• Colorado, New Mexico First to Partner on State-Run IRA Program
• OregonSaves has ‘Meaningfully Increased Employee Savings’