Vestwell, the employer and individual savings platform, 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.”
Douglas Magnolia, President of Vestwell State Savings, said:
“It’s an honor to be selected by New Jersey to power their state retirement program. 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.”
The Secure Choice Savings Program is “a state-facilitated retirement plan to help more private-sector employees save for the future.”
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.”
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.”