Retirement Security Matters
a publication of Massena Associates LLC

Greetings! Welcome! to Retirement Security Matters - a forum for retirement readiness innovation by states, supporters, and servicers.

This week's hot topics include:
  • States in action – Connecticut, Maryland, Virginia, and New Mexico
  • As I See It - Colorado State Treasurer Dave Young
  • State roll out updates – including California’s CalSavers program
  • And – fresh pix – and this week, even poetry!

Comments or content suggestions? We welcome both. Have something about your program you’d like to share? We are all ears.
States in Action
Connecticut (workforce 1.6 million) – working remotely, the Connecticut Retirement Security Authority met twice last week focused on finalizing its program administration procurement. On Monday, April 20, Comptroller Kevin Lembo announced that the Authority has selected Sumday, a subsidiary of BNY Mellon, to act as the program’s administrator. The Board’s next meeting is set for May 15. Expect to see action plans for implementation begin to unfold. The CRSA has also released a fresh new site in connection with the Comptroller’s office.

Maryland (workforce 2.9 million) – is also progressing to rollout mode. In a nod to the disruption caused by COVID-19, the program has extended the submission deadline for its RFP for Program Administration and Investment Management services to April 30. Oral presentations are set for June with contract award targeted for July 2020.

Virginia (workforce 3.8 million) – is the latest state to formally initiate retirement security study activity. On March 27 Governor Northam signed HB 775 directing the Virginia College Savings Plan to convene a stakeholder group, analyze private retirement options and develop recommendations, and report to the General Assembly by December 15, 2020.

New Mexico (workforce 950,000) – was the first state to get implementing legislation passed in 2020. Treasurer Tim Eichenberg’s office will provide administrative support to the program’s board and has initiated a new information page as part of Treasury’s site. The New Mexico Work and Save Act calls for the establishment of both a retirement plan marketplace and an Auto IRA program. The State Treasurer’s Office has until July 1, 2021, to begin the Retirement Savings Plan Marketplace, and until January 1, 2022, to begin the Work and Save program.
Treasurer Dave Young, State of Colorado
As I See It – Colorado's Treasurer Dave Young on Retirement Security

It’s tough out there right now – so we wanted to hear from someone who is in the middle of the action. State Treasurer Dave Young brings a terrific blend of pragmatism, optimism and forward thinking to his role. You’ll see that the Colorado State Treasury is focused on relief and solutions during the COVID-19 crisis. But they are also looking ahead and strategically considering options that will put Colorado’s workforce on a path to better financial resilience post-pandemic.
We asked Treasurer Dave to share his thoughts on a couple of relevant topics. He also shared his latest look.

Tell us about your work on retirement security

I was raised here in Colorado by parents who grew up in the Great Depression. Early on they instilled in me the importance of savings over borrowing. I heard, “you should be earning interest, not paying interest.” It stuck with me. Fast forward: I believe that saving for retirement serves both the future and the present. I see it gets families on stronger footing from one generation to the next. Starting in July of last year I served as chair of the Colorado Secure Savings Plan Board studying our retirement security. After 9 months of research and deep conversations among the Board, its 9 members voted unanimously to recommend a state facilitated Auto IRA program paired with a statewide coordinated financial education campaign. Take a look at our report – it does a good job of showing why.

Did anything about what you learned surprise you?

I wasn’t surprised to learn we have a savings gap in Colorado – most states do. But I was surprised to learn how big a hit our budget is taking as a side-effect of insufficient saving. We call this “the cost of doing nothing.” Our analysis shows a cumulative fiscal impact to the state of almost $10 billion over the next 15 years. If you count the federal cost, the impact is more than $18 billion . That’s big. And it’s avoidable. We just need to create some easy interventions that help people save more, sooner.

How does the pandemic influence your thinking

COVID-19 and the resulting economic collapse have changed life quickly. One thing that’s still clear, maybe even more clear now, is that many Coloradans and our fellow Americans do not have access to sufficient savings or economic security. To me this highlights the need for more retirement savings, providing a cushion now while preparing for later. As many people have lost work and a sense of security in the past 8 weeks, we see how essential it is to have reserves in times of crisis. My hope is that a silver lining of this difficult time is a widespread understanding of the benefits of long-term savings .

What do you see as next steps for Colorado

The Secure Savings bill was introduced about a week before the legislature temporarily adjourned due to COVID-19. We plan to try to pass the bill when the legislature returns on May 18, because we think it really matters to our future security. We may have to be creative and try to pass the bill with a limited fiscal note. We are also very aware of the significant challenges that businesses are facing during the crisis and need the implementation timeline to reflect this reality. I believe in us and am very hopeful we can make this tool available to Coloradans to strengthen their futures.

Treasurer Dave sporting some state pride
 while showing us how it’s done.
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Auto IRA States in Rollout Mode
As of March 31, state Auto IRA programs had achieved over 130,000 funded accounts and average balances of more than $500. Many of the savers in these programs are likely to be among the set of workers whose jobs have been impacted by the pandemic. Anecdotal information indicates that some savers have accessed their accounts and withdrawn savings, but that after an initial jump, withdrawals have declined to pre-pandemic levels. Oregon and Illinois direct the first $1,000 saved to capital preservation options, so savers are less likely to have been affected by market volatility. April data will provide a fresh view.

California (workforce 18 million) – the CalSavers board used technology to its advantage, meeting publicly on April 15 . Key topics covered included a program and investments update, preview of a program consultant RFP expected to be issued shortly, and Board approval of emergency regulations extending the program’s first employer deadline to September 30, 2020 . The Board is next scheduled to meet on May 18.

The OregonSaves Board meets next on May 5 .
Illinois Secure Choice’s Board meets on May 12 .
… And because you are patient - Pix of the Week!
So, did you know Colorado’s Treasury office is dog friendly? The handsome guy to the right of Treasurer Dave is Cortado – “Tado” for short. Here he is chillaxing for a moment while dog-mom Leah Marvin-Riley keeps Treasury’s policy work in good order:
Back in Oregon there’s only one movie playing this week:
If you sneak off to the mountains you may be treated to some fresh sights, like this poetry post in front of a cabin in Brightwood, Oregon. Current feature – Poems for the Pandemic. We especially like this one, by Kim Stafford:



Shelter in Place

Long before the pandemic, the trees
knew how to guard one place with
roots and shade. Moss found
how to hug a stone for life.
Every stream works out how
to move in place, staying home
even as it flows generously
outward, sending bounty far.
Now is our time to practice --
singing from balconies, sending
words of comfort by any courier,
kindling our lonesome generosity
to shine in all directions like stars.

March 20, 2020
If you sneak a little further into the woods, you may be treated to views like this one. And this one. And you may find yourself trying to figure out how many faces you can make out in the rocks. Go ahead, look closer.
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OK, that’s a wrap.

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