Update on Colorado businesses Automatic Retirement Savings Program
Colorado and Maine Enter First-In-The-Nation Partnership for Automatic Retirement Savings
More savers equals lower fees for Coloradans and Mainers
DENVER, COLORADO: Last week, the Colorado SecureSavings Program and the Maine Retirement Investment Trust (MERIT) established a partnership saving Coloradans and Mainers money, and beginning the state-run retirement savings program in Maine.
“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.”
Dave Young, Colorado State Treasurer
“We are looking forward to working closely with Maine in providing a high quality, accessible retirement option to savers in our states. As more states adopt programs, it is imperative that smaller states are confident in their ability to provide a cost effective choice.”
Hunter Railey, Director of Colorado SecureSavings Program
“MERIT will provide 200,000 Mainers a chance to save for their future at work. We are excited to be working with Colorado SecureSavings to deliver a proven automatic savings program that follows employees throughout their careers while being easy and free for participating Maine employers.”
Beth Bordowitz, Executive Director, Maine Retirement Investment Trust
An Interstate Adhesion Agreement was signed on August 11, 2023. This partnership helps the State of Maine offer a cost-friendly, state-run retirement program for workers who don’t have access to a retirement savings program. This increases the number of Mainers saving for retirement, while decreasing fees for Coloradan savers. Vestwell, in partnership with BNY Mellon, serves as the Program Administrator, providing recordkeeping, custodial, and administrative services to employers and employees in Colorado and Maine.
Both programs are tied to the employee instead of the employer, making the account portable when the employee leaves and changes jobs. These retirement programs are an easy way for Coloradans and Mainers to save for the future.
With the successes of the state-run retirement savings programs in California, Illinois, and Oregon, the Colorado and Maine partnership represents the next step in extending low-cost, portable retirement savings options to workers without access to a savings program.
Colorado business owners need to decide on their retirement plan options by December 31, 2023. For more information please visit coloradosecuresavings.com The Colorado SecureSavings program has nearly 12,000 registered employers this far.
The Lyons Recorder announced this program in January 2023. Here are the facts:
===NEW STATE RETIREMENT PROGRAM
New Pilot program to help those who want to save money for retirement: Colorado Secure Savings Program, began January 19th. It will help those who can’t otherwise get plans through an employer. No cost for employers! Takes very little time for both to set up and run. It’s voluntary at all times. Set it up online, but there are also “real people” to answer your questions.
There are 57 million workers who lack access to retirement plans (per CNBC).
Here in Colorado, nearly 940,000 workers have no employer-sponsored retirement savings plan. Colorado SecureSavings was created by law to meet this urgent need. Once enrolled in Colorado SecureSavings, employees can contribute to a Roth Individual Retirement Account (IRA) directly from their paychecks and access tools to help them reach their financial goals. It is open to full time and part time workers.
