On the heels of its announcement that it plans to acquire Sumday, a subsidiary of BNY Mellon that manages and administers state-sponsored savings programs, Vestwell announced Dec. 8 that Sumday will administer plans in Oregon, Connecticut and Maryland.
The collaboration between the Vestwell, OregonSaves and BNY Mellon teams delivered a successful conversion of the OregonSaves program onto the Vestwell platform in early November, the firm notes, adding that it has already onboarded 6,200+ businesses and processed 9,600+ contributions through the OregonSaves program, which currently has $142 million in total funds saved.
In parallel, Connecticut began its initial pilot launch of MyCTSavings, a new program established by the State of Connecticut’s Retirement Security Authority. The full program rollout is anticipated to begin in early 2022 and is expected to help the more than 600,000 private-sector employees in Connecticut that do not currently have access to a retirement plan at work.
Finally, Maryland will be the third state to launch on the Vestwell State Savings platform, according to the firm. BNY Mellon and Vestwell recently won a competitive bid to power the new MarylandSaves program, which will launch automatic workplace retirement and emergency savings in mid-2022. As a result, 1.2 million Marylanders will now be able to save through their workplace.
“There’s an incredible opportunity right now for states to actively support small businesses and increase access to a range of essential savings programs including 529 college savings, 529A ABLE, and Auto-IRAs for individual savers in their communities,” states Aaron Schumm, Founder and CEO of Vestwell. “We are thrilled to partner with Oregon, Connecticut and Maryland, bringing us one step closer to closing the retirement savings gap in the United States.”