New Jersey hired Vestwell, a New York-based record-keeping platform, as program administrator for the Secure Choice Savings Program, a new state retirement program.
This is Vestwell's seventh deal with a state-facilitated retirement program, said a Sept. 26 news release.
Citing a report from the Georgetown University Center for Retirement Initiatives, the release noted that there exists almost a 50% gap in access to retirement savings in New Jersey currently. This program, Vestwell said, "will close this gap by providing access to over 800,000 employees without a retirement savings plan."
The Secure Choice Savings Program is a state-facilitated retirement plan to help more private-sector employees save for the future. The program was created in March 2019 when Governor Phil Murphy signed the New Jersey Secure Choice Act.
Vestwell, in partnership with BNY Mellon, will provide the platform, record keeping, custodial services and customer support to those participating in the New Jersey Secure Choice Savings Program, the news release added.
The pilot program, which will begin in 2024, followed by a "phased rollout" that kicks off later that year, will be fee-free for employers, and employee participation will be voluntary.
The Secure Choice Savings Board independently administers the program.
According to the New Jersey State Treasury Department, an RFQ (request for quotes) had been issued for the Secure Choice Savings program administrator position. The RFQ expired on Aug. 1.
Further details were not immediately available.