New Jersey is the latest state to partner with Vestwell on offering sponsored individual retirement accounts (IRAs) to employees without a retirement savings plan.
The 401(k) recordkeeper announced Tuesday that the state had selected it as program administrator for the Secure Choice Savings Program, an IRA plan that is estimated to provide retirement savings to over 800,000 New Jersey residents who are not enrolled in an employer-sponsored plan.
“Good partnerships are the key to success in any great initiative, and we are excited to have Vestwell as a partner in bringing this critical retirement savings program to so many New Jerseyans who do not have access to private retirement savings plans,” said Todd M. Hassler, executive director of Secure Choice Savings Program, in a statement.
Vestwell, in partnership with BNY Mellon, will provide the platform experience, recordkeeping, custodial services, and customer support to those participating in the New Jersey Secure Choice Savings Program.
In 2019, New Jersey Governor Phil Murphy signed the New Jersey Secure Choice Act, which created this program for the state’s residents. The Secure Choice Savings Board independently administers the program.
The pilot program is anticipated to begin in 2024 and will be followed by a phased rollout towards the end of next year. The Secure Choice Savings Program will be fee-free for employers, and employee participation is voluntary, reported Vestwell in its release.
New Jersey is now the seventh state to have partnered with Vestwell on state-facilitated retirement programs, which have previously included Colorado, Maine, Oregon, Maryland, Connecticut, and Virginia. Vestwell first collaborated on state-run IRAs with OregonSaves in 2017, which has since accrued $1 billion in retirement savings.
“Vestwell is committed to partnering with state governments to transform access to savings, added Douglas Magnolia, president of Vestwell State Savings. “These programs have an instrumental impact on their communities, providing opportunities for individuals across all backgrounds and income levels to save for their futures.”
Correction: This article had previously inaccurately mentioned New Mexico, instead of Virginia, as a state partner with Vestwell.
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