The fintech firm has been selected as the vendor that will administer the first multi-state retirement plans that provide retirement plan coverage for employees whose employers do not. Vestwell announced April 28 that it won a competitive bid process to serve as the administrator of the plans.
In partnership with BNY Mellon, Vestwell will serve as the program administrator for the plans and will provide recordkeeping, custodial and administrative services to employers and employees in both states. Vestwell already administers state-run retirement plans in Oregon, Maryland and Connecticut.
“We are thrilled to be working with Vestwell, who has extensive experience expanding retirement savings through innovative solutions,” said Colorado State Treasurer Dave Young in a press release, calling it “a significant step towards providing Colorado employers and workers with the opportunity to save for a dignified and sustainable retirement.” Tim Eichenberg, Young’s New Mexico counterpart, remarked that “New Mexico appreciates the opportunity to work in such a collaborative environment to bring a high-quality retirement option to our employers and workers.”
Colorado and neighboring New Mexico announced on Nov. 9, 2021 that they planned to form a partnership regarding the state-run retirement saving programs each operates, and that they signed a Memorandum of Cooperation to pursue a formalized partnership agreement for their auto-enroll IRA programs. It is the first such arrangement between states.
