New Jersey Selects Vestwell as Secure Choice Savings Program Administrator
The agreement marks the company’s seventh state-facilitated retirement partner.
New Jersey has selected Vestwell as its program administrator for the Secure Choice Savings Program, the digital 401(k) provider announced in a statement.
The Secure Choice Savings Program is a state-facilitated retirement plan set up to help more private sector employees save. In 2019, Governor Phil Murphy signed the New Jersey Secure Choice Act, which established the program for the state’s residents.
The partnership is Vestwell’s seventh state-facilitated retirement program and follows the August announcement of its selection as the provider for the Maine Retirement Investment Trust, the newest state-facilitated retirement program in the country.
More states are following the trend of sponsoring retirement savings, with Nevada and Vermont the latest to approve such programs, and Pennsylvania’s Keystone Saves awaiting approval from its state senate.
State-facilitated retirement savings programs have accumulated more than $1 billion in assets as of July 31, according to data collected by the Center for Retirement Initiatives at Georgetown University. Those assets are held by only eight of the 19 state programs, with the largest share in the programs run by California, Oregon and Illinois, each of which launched in 2018 or earlier, the center reported. There are also two city-sponsored programs in the U.S.
Other small plan providers have been actively involved with state plans, including Ascensus, which serves plans for Illinois and California. Even more are offering startup 401(k) plans competing with state-backed plans, with some advertising the potential advantages of a private provider.
Partering with BNY Mellon, Vestwell will provide the New Jersey Secure Choice Savings Program with experience, recordkeeping, custodial services and customer support. The pilot program will begin in 2024, followed by a phased rollout later in the year. The program will be fee-free for employers, and employee participation will be voluntary.
“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 the Secure Choice Savings Program.