New state retirement program to provide access to over 800,000 employees without a retirement savings plan
NEW YORK, Sept. 26, 2023 /PRNewswire-PRWeb/ -- Vestwell, the leading employer and individual savings platform, today announced New Jersey has selected the company as its program administrator for the Secure Choice Savings Program. The partnership will provide New Jersey residents access to modern retirement plans through their employers and marks Vestwell's seventh state-facilitated retirement program.
"It's an honor to be selected by New Jersey to power their state retirement program," said Douglas Magnolia, President of Vestwell State Savings. "Vestwell is committed to partnering with state governments to transform access to 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."
According to the Georgetown University Center for Retirement Initiatives, there is nearly a 50% gap in access to retirement savings at work in New Jersey today. This program will close this gap by providing access to over 800,000 employees without a retirement savings plan. New Jersey is the latest to join the growing number of states to launch savings programs. Starting with OregonSaves in 2017, these programs have helped add $1 billion in retirement savings to those who would not otherwise have had an opportunity to save at work.
"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.
The Secure Choice Savings Program is a state-facilitated retirement plan to help more private-sector employees save for the future. In 2019, Governor Phil Murphy signed the New Jersey Secure Choice Act (P.L. 2019 c. 56), which created this program for the state's residents. The Secure Choice Savings Board independently administers the program.
The New Jersey Secure Choice Savings Board selected Vestwell as the program administrator. 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.
The pilot program will begin in 2024, followed by a phased rollout that kicks off later in the year. The program will be simple to administer and fee-free for employers, and employee participation will be voluntary. To learn more, visit nj.gov/treasury/securechoiceprogram.
Vestwell powers over 30 state savings programs across automatic IRAs, 529 Education Savings, and ABLE disability programs. New Jersey is the latest state to select Vestwell as its retirement program administrator. This news follows wins earlier this year with CalABLE and the announcement of Maine partnering with existing state client Colorado SecureSavings.
About Vestwell
Vestwell is a leading employer and individual savings platform. Founded in 2016, the New York City-based fintech company is transforming access to essential financial wellness and savings programs to close the American savings gap. As an extension of its partners, Vestwell enables a suite of programs, including retirement, health, and education, such as 401(k), 403(b), IRA, 529 College, ABLE disability, and Emergency Savings programs. Today, Vestwell enables over 330,000 small businesses, and over a million active savers, with nearly $30 billion in assets saved in all 50 states. To learn more visit: vestwell.com.
Media Contact
Nicole Wood, Vestwell, 1 5302773951, [email protected], Vestwell
SOURCE Vestwell
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