Vermont pushes partnership to hasten auto-IRA program

investmentnews.com:

Vermont’s journey to make its auto-IRA program a reality is poised to go much more quickly as the state eyes a key collaboration. Vermont state treasurer Michael Pieciak said it has chosen Colorado to assist in the development of the state’s public retirement program, VT Saves.

Vermont’s auto-IRA program, originally slated for a phased rollout between July 1, 2025, and July 1, 2026, is now on pace to launch by year-end, promising to provide numerous Vermont workers without existing retirement plans a new avenue to save.

The proposed partnership aims to utilize Colorado’s experience from its Colorado SecureSavings program, an auto-IRA retirement savings initiative that has seen significant participation and growth since its inception.

“Partnering with Colorado will lower costs, help achieve better returns, and position VT Saves to launch sooner,” Pieciak said in a statement, emphasizing the collaboration’s role in “expanding retirement coverage and supporting financial equity in our state.”

The Colorado SecureSavings program, launched last year, has already enrolled more than 14,000 employers and tens of thousands of Coloradans, amassing more than $50 million in AUM.

A recent paper by Georgetown University’s Center for Retirement Initiatives offers a strong endorsement for multistate initiatives, particularly for smaller states that may find it hard to administer an auto-IRA program on their own.

“A state partnership can help a new program launch more quickly because it can take advantage of the existing infrastructure of another state’s established program,” the study said, pointing to cost benefits from reduced startup fees and lower costs over time as savers find economic strength in numbers.

If it succeeds in its