Digital record keeper Vestwell continues to grow as program administrator for state retirement plans.
On Tuesday, New Jersey announced that it selected Vestwell to run its Secure Choice Savings Program, a plan designed to help private-sector employees save for retirement. The partnership, which is Vestwell’s seventh state-facilitated retirement program, will provide access to more than 800,000 New Jersey resident who currently don’t have a retirement plan.
“Vestwell is committed to partnering with state governments to transform access to savings,” Douglas Magnolia, president of Vestwell State Savings, said in a statement. “These programs have an instrumental impact on their communities, providing opportunities for individuals across all backgrounds and income levels to save for their futures.”
New Jersey Gov. Phil Murphy created the program in 2019 with the New Jersey Secure Choice Act, adding to a growing list to state-facilitated savings programs, or auto-IRAs, that began with OregonSaves in 2017. According to Vestwell, these programs have added $1 billion in retirement savings for workers who otherwise would not have a plan. Vestwell now works with more 30 states on programs including auto-IRAs, 529 education savings plans, and ABLE disability programs.
In New Jersey, a pilot program will begin in 2024, followed by a phased rollout later in the year. The Secure Choice Savings Board independently administers the program. Vestwell, in a partnership with BNY Mellon, will provide the digital portal, record keeping, custodial services and customer support to plan participants.
Vestwell signed a number of significant deals in 2023. The fintech company was selected in February to administer California’s ABLE program, partnered with J.P. Morgan in May to expand the brokerage’s 401(k) business, and in July acquired a student loan benefits provider from Morgan Stanley.
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