The Commonwealth of Virginia has selected Vestwell as the program administrator for RetirePath Virginia, the state’s retirement program for employees whose employers do not offer a plan.
The partnership will provide Virginians with access to a workplace retirement plan through their employer and marks Vestwell’s fifth selection to administer state-facilitated retirement programs, the firm announced. Once all state programs are live, Vestwell is expected to power over three million savers.
“There’s a monumental shift happening in the retirement industry,” said Aaron Schumm, Founder and CEO of Vestwell. “We’re seeing more and more states playing a central role in closing the retirement savings gap across the country. We’re proud to partner with states like Virginia who are pioneering the way small businesses and their employees will achieve a secure financial future.”
Under the state’s legislation, Virginia529 is directed to establish and oversee the RetirePath Virginia program. As part of that process, Virginia529 selected Vestwell as the program administrator and BlackRock as the primary investment manager for RetirePath Virginia. Vestwell, in partnership with BNY Mellon, will provide recordkeeping, custodial services and customer support to participating RetirePath Virginia employers and employees.
“Vestwell is the only fintech company that partners with state governments to offer a personalized savings experience, spanning across all savings vehicle verticals, while leveraging smart learning and modern APIs to reduce the administrative burden for states and small businesses alike,” said Douglas Magnolia, President of Vestwell. “Our experienced team, along with our modern, state-of-the-art platform sets us apart from competitors, which is why we have been selected to be the engine behind seventy-five percent of the state-run retirement programs that will be launched soon, making savings more affordable and accessible for millions of Americans across the country.”
RetirePath Virginia’s pilot program is scheduled to begin in early 2023 and phased enrollment will start by July 1, 2023. In April, Vestwell won a bid to power Colorado Secure Savings Program and New Mexico Work and $ave. Vestwell also powers Oregon, Maryland and Connecticut’s state retirement savings programs.
