Special Section: Thank You! and Welcome 2021 ❤

For many of us, this year has been a wild ride. It started off so promisingly! and then took a pretty big left turn. Massena Associates was born into this environment – cozy, then crazy. We would like to take a moment to thank each of you for your support during the year – as clients, as colleagues, as co-collaborators. Your involvement with us means more than we can express. *Thank you*

2021 promises to be equally interesting. We’ve all been in a natural disaster together. Or an automotive accident - use your favorite metaphor. It’s not quite over, but things are starting to slow down and shift in the right direction. Here are five recovery steps we’re thinking about for all of us:

OregonSaves: Three Years Young.  

Treasurer Read, you just won re-election to a second term as Treasurer of the great State of Oregon. Tell us about your priorities for the coming term.

Yes. It was certainly a campaign unlike any other I've ever been part of, but I'm really gratified by the results. And I think it represents an endorsement of the approach that we've tried to take in my first term of not pursuing headlines for headlines’ sake, but really trying to focus on the core responsibilities of the office. Among those has been trying to meet people where they are in their everyday lives. This is obviously a challenging time for people in Oregon. A big part of our priorities for the next year plus is putting Oregon in a strong position to deal with the realities of the pandemic and the economic circumstances that have resulted. 

OregonSaves has been a big part of that as you well know - putting people in a better position to absorb the disruption that the pandemic has caused. Our priorities are to continue to roll the program out, to continue to make sure our revamped college savings plan is relevant and known to people, and to continue professionalizing, modernizing and -- I don't know if inoculating is exactly the right word -- but bolstering the rest of our investment operations to be ready for whatever other disruption comes. We’re thinking the same way about our bonding offerings as well. And making sure that we're a trusted source of information for the legislature and the Governor, as the state navigates some turbulent waters.

One of the great aspects of this program has been to see those continued increases. And it feels like pretty swift growth for a new program like this. I think you put your finger on what is really encouraging -- despite all the very real challenges that people are absorbing and dealing with, they continue to save. We've also seen the reality and the improvement for these folks against the stat we're all familiar with from a couple of years ago, that half of American families couldn't absorb a $400 unexpected expense without… It’s a cliffhanger! … Click here to open, read and save.

That's awesome. Thank you Treasurer Tobias Read! If you’d like to connect directly with Treasurer Read and his office you can reach him at (503) 378-4000 or Oregon.Treasurer@ost.state.or.us. You can follow the work of the Oregon State Treasury on Twitter: @OregonTreasury. And you can follow and engage with OregonSaves: @ORSaves and at its Board site.

We’ll all have to wait for fresh data in January! - although OregonSaves tweeted today that they're up $4 million since November 30. Given the rates of growth, we forecast the combined programs could be serving more than a quarter of a million workers as we roll into the New Year.

Virginia (workforce 3.8 million) – Following very thoughtful work over the second half of 2020, Virginia529 submitted their Report and Recommendations to the General Assembly on December 15, 2020. The report notes: 

You can also find more information on Virginia’s retirement study here. 

Connecticut (workforce 1.6 million) – The CRSA Board met December 18. Key topics included approval of refreshed governance documents, which will be published to the state’s law journal, and methods for acquisition of employer data for purposes of program operations. In-state data sharing is somewhat complicated by the fact that the program is operated by an authority informally deemed a “quasi” which is not a full state agency. Staff provided an update on the program administration contracting process with the expectation that a contract could be brought to the Board for approval by January. 

The Board also reviewed potential 2021 legislative recommendations, including 1) removal of the 3% default savings rate from statute and instead allowing the level to be set at the discretion of the Board; note that the statute also does not reference the ability for the program to auto-escalate; 2) an amendment to the definition of Covered Employee that would allow employees to be included in the program sooner; 3) amendment to the program’s fee cap language allowing flexibility to impose a cap after the program achieves self-sufficiency, rather than at four years; 4) removal of the marketplace web site concept from legislation; 5) Insertion of provisions protecting employers from liability and limiting their role; and 6) Inclusion of an emergency savings concept in the program’s structure.

Wisconsin (workforce 2.6 million) – Wisconsin’s Retirement Security Task Force is working to complete its report and is scheduled to meet again for review and discussion on January 20, 2021.

The next Colorado Secure Savings Board Meeting will be held on January 5, 2021, from 3-5pm Mountain Time. You’ll find more information here.

A special meeting of the OregonSaves Board is scheduled for January 6, 2021. The agenda is available on the meeting calendar, by download. 

Next time I will share several studies from 2020 that examine gender and racial and ethnic disparity in retirement wealth. 

Stay tuned and Happy New Year! / Grant

On the calendar: DCIIA hosts three great sessions this January:

A little fireside reading, or if you’re somewhere warm, take this off to the pool with you. 

What We Are Reading: Conspicuous Gallantry: Civil War Diary and Letters of Rutherford B. Hayes, by … Rutherford B. Hayes. Before you write this off as duller than dull (we wouldn’t do that to you) -- it is a great read for a first-hand perspective on the Civil War from its early days, and on everyday life in the US in the middle-1800s. We’re only to the middle of the book but it’s been fascinating. Plus, who doesn’t like reading other peoples’ diaries? Get it as an ebook or spring for an original edition.

What can we say: Iconic. Treasurer Read rocks the top look of 2020. Are those symbols of the good life in Oregon on your mask? We think we see Haystack Rock. And … a little Zoom-bombing never hurt anybody … who’s that cute character over your shoulder!

Now, about those holidays: It’s possible if you’ve been in quarantine all year and there’s no hope of a family gathering, that you will make a break for some sun. You’ll start by getting a COVID test, and gathering up all your extra masks so you have plenty to wear. And then, yes, you will get on an … airplane.

You might find yourself all alone on the beach, but at least you will be in the sunshine, eating Snow Puffies with the ones you love. One of us looks a little grumpy. He’s smiling on the inside. What is a Snow Puffy you ask? There's only one place on earth you can get this custard-filled, powdered-sugar-covered stack of mille-feuille. And they are delicious! Try not to get sand on them.

Mission Accomplished!

OK, that’s a wrap. Thank you for joining us. And here’s to many more Nest Eggs in 2021. ❤

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Massena Associates provides process, policy, and implementation consulting on retirement savings programs and products. Our clientele includes states, governments, policy organizations, and private sector providers. Our specialty – efficient, targeted results. We are an active speaker on retirement security topics, including state-facilitated programs, MEPs and more.

If you’d like to explore working together, we welcome the conversation. Connect with us here, and at 339-236-0684.

Looking for a great retirement savings innovation resource? Led by Dr. Alicia Munnell, the Center for Retirement Research at Boston College develops and hosts terrific content and proprietary research related to states, financial security, social security, and more.

The Georgetown Center for Retirement Initiatives, managed by Angela Antonelli, provides excellent information on state-based and other retirement security innovation and policy.

Pew’s Retirement Savings Project studies the challenges and opportunities for increasing retirement savings and is another great resource - check out the work of John Scott and his terrific team.

If you want a great source of broad-based, consumer-focused retirement news, Jeffrey H. Snyder’s The Morning Pulse is your ticket. You can subscribe here.