Colorado and New Mexico hired Vestwell as program administrator of their state-run auto-enroll IRA programs.
The Colorado and New Mexico programs, both enacted through legislation passed in 2020, are state-facilitated payroll-withholding IRA savings programs for private-sector workers that do not have access to a workplace retirement savings plan.
Executives of the Colorado Secure Savings Program and the New Mexico Work and Save Program had signed a memorandum of cooperation in November to pursue a formalized partnership agreement.
The hiring was announced in news releases from the Colorado state treasurer's office and Vestwell on April 28 and April 29, respectively.
The hiring was the result of a six-month search process led by the Colorado Secure Savings Program Board with assistance from its New Mexico partners. Hunter Railey, director of the Colorado program, said there was a total of two bidders and no other finalists were named.
The Vestwell news release said the firm will serve as the program administrator and provide record-keeping, custodial and administrative services in partnership with Bank of New York Mellon to employers and employees in Colorado and New Mexico.
The Colorado Secure Savings Program requires employers with five or more workers to make the state savings program available to their workforce if they do not offer one themselves. The New Mexico Work and Save Program is a program that employers can voluntarily make available to their workers.
Colorado is planning to implement its program this October, while New Mexico's implementation is scheduled for July 2024.
Vestwell spokeswoman Nicole Wood and Claudia Armijo, executive director of the New Mexico Work and Save Program, could not be immediately reached for further information.
