The Green Mountain State and the Centennial State are going to partner in establishing VT Saves, the state-run program that will provide retirement plan coverage for private-sector employees in Vermont whose employers do not. 
On June 1, 2023, Gov. Phil Scott (R) signed into law a measure creating VT Saves, an auto-IRA program through which payroll deductions will be contributed to a Roth IRA. Employers that do not already have a workplace retirement plan will be required to sign up in phases; all eligible employers with at least five employees will be required to offer the program by July 1, 2026.
Cooperation with Colorado
On April 10, Vermont Treasurer Mike Pieciak announced that his state and Colorado will be partners in establishing VT Saves. The two states still need to negotiate a partnership agreement, according to the announcement.
Vermont officials say they expect that the partnership with Colorado will result in greater total assets under management, which in tun would lead to economies of scale and reduced costs—and therefore higher returns.
In a press release, Pieciak hailed the impending arrangement as “an important step forward in expanding retirement coverage” and added that it “will lower costs, help achieve better returns, and position VT Saves to launch sooner.”
Pieciak continued that he appreciates the leadership Colorado Treasurer Dave Young, who he said “is demonstrating the value that can be achieved by states working together.”
For his part, Young said, “The Colorado SecureSavings Program is delighted to enter into negotiations with Vermont and welcomes the expansion of the Partnership for a Dignified Retirement. This will help pave the way for more savers across the country to prepare for retirement, and to retire with confidence” and that he looks forward to working with Pieciak.
Not the First
The upcoming agreement between Vermont and Colorado is not unique, at least for Colorado.
The Centennial State has a penchant for such cooperation and already has entered into agreements with Maine and Delaware; together they comprise the Partnership for a Dignified Retirement, an interstate consortium intended to help states provide access to retirement plan coverage. The Colorado Secure Savings program and the New Mexico Work and $ave program also have signed a Memorandum of Cooperation.
Delaware. In December 2023, the Delaware EARNS Program Board, which is overseeing the initial design and implementation of the First State’s program, decided to enter into an agreement with Colorado Secure Savings. EARNS Board Chair Fayetta M. Blake expressed the expectation that doing so would “greatly accelerate” launching EARNS and benefit EARNS participants as well.
Maine. The Colorado Secure Savings program and the Maine Retirement Investment Trust (MERIT) on Aug. 11, 2023 established a partnership to provide retirement plan coverage to private-sector employees whose employers do not. Under that agreement, MERIT will join with the Colorado SecureSavings program in offering coverage; they will operate independently, but share governance.
New Mexico. And earlier, on Nov. 9, 2021, the Colorado Treasury Department announced that the Colorado Secure Savings program and the New Mexico Work and $ave program signed a Memorandum of Cooperation to pursue a formalized partnership agreement for their auto-enroll IRA programs.
The Colorado-New Mexico was the first such arrangement between states, and created the first auto-enroll IRA multi-state program in the United States.
- Log in to post comments