Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
Vermont State Capitol

Retirement Planning > Retirement Investing

Vermont Partners With Colorado to Launch Its Auto-IRA Program

By Michael S. Fischer

X
Your article was successfully shared with the contacts you provided.

Vermont has selected Colorado as a partner state to help establish its public retirement program, the state’s treasurer, Mike Pieciak, announced recently.

The two states will negotiate a partnership agreement, and once it is established, the partnership will put VT Saves on track to debut by the end of 2024, providing tens of thousands of Vermonters access to a workplace retirement plan ahead of the July 1, 2026, deadline set by state law.   

“Partnering with Colorado will lower costs, help achieve better returns and position VT Saves to launch sooner,” Pieciak said in a statement. “Many Vermont workers without a retirement plan are not saving a penny for retirement.”

VT Saves is an auto-IRA retirement savings plan that will be available for Vermonters not currently offered a retirement plan through their employer. The program became law last year in a unanimous vote, adding Vermont to a growing list of states that have enacted a public auto-IRA program.

On March 28, Washington’s governor, Jay Inslee, signed a bill to create such a program.

Employers with five or more employees who do not already offer a retirement plan will be required to sign up for VT Saves, and employees who do not opt out will automatically have a Roth IRA established with payroll deductions. 

The announcement said that just as Vermont’s participation in the STABLE partnership offers ABLE accounts to Vermonters with disabilities, the VT Saves partnership with Colorado will expand total assets under management, leading to increased returns through economies of scale and reduced costs.

Last year, Colorado rolled out Colorado SecureSavings. In its first 14 months, some 14,000 employers enrolled in the auto-IRA retirement savings program, accumulating more than $50 million of assets under management and supporting a more secure retirement for tens of thousands of Coloradans, according to the announcement. 

Maine and Delaware have also partnered with Colorado, forming a consortium of state-run retirement savings programs.

Pictured: State Capitol building in Montpelier, Vermont.

Michael S. Fischer

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.