Leading savings platform to administer first-ever joint state auto-IRA program in Colorado and Maine
NEW YORK, Aug. 17, 2023 /PRNewswire-PRWeb/ -- Vestwell, a leading small business retirement provider and individual savings platform, today announced it will power the Maine Retirement Investment Trust (MERIT), the newest state-facilitated retirement program in the country.
MERIT is designed as a state automatic IRA savings program available to businesses in Maine. MERIT has selected to partner with an existing Vestwell auto-IRA program, Colorado SecureSavings, to launch the pilot program in late 2023. Administered by Vestwell, the partnership creates the first live multi-state auto-IRA program. Once established, the MERIT program will provide an estimated 40 percent of private-sector workers in Maine with expanded access to workplace retirement savings.
The cost to support a growing retirement population with insufficient savings is estimated to create over $330 billion in additional state spending over the next 20 years. The state auto IRA programs are a key way in which state governments can expand access to retirement savings, help close the savings gap, and reduce their financial burdens.
"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. "This new partnership model expands access to more states looking to launch automatic IRA programs by providing an affordable and streamlined option."
The Colorado SecureSavings program launched in January 2023 and completed its initial rollout on June 30. Colorado businesses with five or more employees that have been in business for more than two years are required to facilitate Colorado SecureSavings or another qualified workplace retirement program.
"I'm proud to see Colorado leading the nation on this. 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," said Colorado State Treasurer, Dave Young.
The Maine Retirement Investment Trust (MERIT) was established by the Maine legislature in 2021 with the goal of helping to address Maine workers' inadequate retirement savings and the resulting costs to the State. When the program opens, businesses with five or more employees will be required to facilitate the program or offer another qualified workplace retirement plan program. Vestwell, in partnership with BNY Mellon, will serve as the program administrator, providing recordkeeping, custodial, and administrative services to employers and employees in Maine and Colorado.
"Here in Maine we are excited about this innovative partnership with Colorado to promote savings. Vestwell has made this multi-state effort possible," said Maine State Treasurer, Henry Beck.
Vestwell continues to lead in the state savings industry and is the only company to launch a new state automatic IRA program since 2021. Vestwell powers over 30 state savings programs across automatic IRAs, 529 College Savings, and ABLE programs and delivers savings vehicles on a modern, efficient, and affordable platform for its state partners.
About Vestwell
Vestwell is the modern fintech engine powering savings programs for small businesses and individual savers across the country. We're helping to close the savings gap by offering a flexible, cost-effective, modern solution to save for the critical aspects of life - retirement, education, and healthcare. Vestwell currently powers nearly 30,000 small businesses, over a million savers, and $27 billion in assets in all 50 states. To learn more visit vestwell.com.
Media Contact
Nicole Wood, Vestwell, 1 5302773951, [email protected], vestwell.com
SOURCE Vestwell
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