Colorado and Maine are joining forces to reduce costs for its residents, and partnering with small business retirement provider Vestwell in doing so.
The Colorado SecureSavings Program and Maine Retirement Investment Trust (MERIT) signed an agreement on August 11, establishing a partnership that would use Colorado’s already-established program to help Maine offer a state-run individual retirement account (IRA) for over 200,000 private-sector workers without retirement savings coverage.
Under the agreement, MERIT and Colorado SecureSavings will share governance but operate independently. Both programs will be tied to the employee instead of the employer, making the account portable when the employee leaves and changes jobs.
“I’m proud to see Colorado leading the nation on this,” said Colorado State Treasurer Dave Young, in a press release. “Partnerships increase the number of Americans saving for retirement, while decreasing fees for Coloradan and American savers alike, helping states with smaller populations offer a cost-friendly, state-run retirement program option for workers who don’t have access to one at work.”
“Workers in every state want a free and easy way to save so they can retire with dignity,” added Maine State Treasurer Henry Beck, in the release. “Partnering with Colorado we will share costs, create scale, and tailor a retirement savings program to meet the needs of Mainers. “
Vestwell, in partnership with BNY Mellon, will serve as the program administrator, and provide recordkeeping, custodial, and administrative services to private-sector workers in Colorado and Maine.
Vestwell currently serves as the vendor for Colorado’s SecureSavings program, and administers state-run plans in Oregon, Maryland, and Connecticut, among others.
“We’re delighted to spur innovation at the state level and partner with Maine and Colorado to launch the first multi-state auto-IRA,” said Douglas Magnolia, President of Vestwell State Savings, in a statement. “This new partnership model expands access to more states looking to launch automatic IRA programs by providing an affordable and streamlined option.”
The partnership would be the second for Colorado. In 2021, Colorado’s SecureSavings program and New Mexico’s Work and $ave signed the first auto-enroll IRA multi-state program in the U.S. for workers without access to retirement savings plans. Both would collaborate on shared program administration and financial services, marketing and outreach support, program evaluation and research, and data collection and participant privacy. Vestwell had also won that bid to administer the two programs.
SEE ALSO:
- Colorado, New Mexico First to Partner on State-Run IRA Program
- Vestwell to Power Colorado-New Mexico Auto-IRA Program
- Colorado Becomes Latest State to Adopt an Auto-IRA Program
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
