Vestwell continued its march on state-sponsored private retirement plans on Tuesday and announced that New Jersey has selected the company as its program administrator for the Secure Choice Savings Program.
“The partnership will provide New Jersey residents with access to modern retirement plans through their employers and marks Vestwell’s seventh state-facilitated retirement program,” according to the firm. 
“It’s an honor to be selected by New Jersey to power their state retirement program,” Douglas Magnolia, President of Vestwell State Savings, said in a statement. “Vestwell is committed to partnering with state governments to transform access to savings. These programs have an instrumental impact on their communities, providing opportunities for individuals across all backgrounds and income levels to save for their futures.”
Vestwell cited the Georgetown University Center for Retirement Initiatives when noting that there is almost a 50% coverage gap in New Jersey currently.
It claimed that the Secure Choice Savings Program will close this gap by providing access to over 800,000 employees without a retirement savings plan.
New Jersey is the latest to join the growing number of states to launch savings programs. Starting with OregonSaves in 2017, the programs have helped add an estimated $1 billion in retirement savings to those who would not otherwise have had an opportunity to save at work.
“Good partnerships are the key to success in any great initiative, and 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," Todd M. Hassler, Executive Director of Secure Choice Savings Program, said.
The Secure Choice Savings Program is a state-facilitated retirement plan to help more private-sector employees save for the future. In 2019, Governor Phil Murphy signed the New Jersey Secure Choice Act (P.L. 2019 c. 56), which created this program for the state’s residents. The Secure Choice Savings Board independently administers the program.
The New Jersey Secure Choice Savings Board selected Vestwell as the program administrator. Vestwell, in partnership with BNY Mellon, will provide the platform experience, recordkeeping, custodial services, and customer support to those participating in the New Jersey Secure Choice Savings Program.
The pilot program will begin in 2024, followed by a phased rollout that kicks off later in the year.
