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RETIREMENT SECURITY MATTERS
A forum for retirement innovation information sharing
focused on states, supporters, and service providers.
Vol 74 | March 9, 2023
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Greetings! Lisa, welcome to Retirement Security Matters – where we talk about retirement readiness innovation by states, supporters, and service providers. | |
Friends, we’ve made it to March – the month where we start slicing out of our winter cocoons and things kick into high gear. The defined contribution world is no exception. If things are warming up where you are, grab an iced coffee (tea?) and take a moment to exhale. If you’re in New England, despite the freezing temps we know that’ll be an iced Dunkin to go. #getit
And … Happy International Women’s Day this week to all the extraordinary women who have dedicated their time to retirement security. You are kicking it! Take a moment to recognize someone near you this week.
OK, back to work here! What’s in this edition you ask?
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We’re at DCIIA’s spring event series – the Innovation Forum, Retirement Research Summit, and Diversity Equity and Inclusion Awards. Special focus on the DEI Awards.
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Fresssh numbers from the states
- Key updates from California, Delaware, Connecticut, Kansas, and Missouri
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David John and one more nugget on Universal Auto IRA impact
- Hot Sauce and Cool Stuff
- … and Pix of the week! a great recc for those coffee lovers around Portland
| Comments or content suggestions? We welcome both. Have something about your program you’d like to share? We are all ears. | |
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Building Innovation Internally: DCIIA DEI Awards | |
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What’s one step to a more inclusive retirement system? Good hires. Good hires and good promotions. This week we attended DCIIA’s Diversity, Equity and Inclusion Awards event in Charlotte, North Carolina. Held at Bank of America, the awards celebrated both Rising Stars and current Leaders from diverse backgrounds and perspectives, and who are advocating for or otherwise significantly contributing to their organizations' diversity, equity and inclusiveness.
You’ll want to follow this crowd. They are cohort number 3 – preceded by the Leaders and Rising Stars of 2020 and 2021 (recognized the following spring of each year).
Actionable advice to Rising Stars, which appeared to apply to everyone in the room: Be willing to be uncomfortable. Find a good mentor, be a good mentor. Don’t stop at diversity; interrogate the policies and the systems that support equity. Manage and develop leaders who can help people see the end outcome and steps they can take to get there. Be the change you want to see.
And our favorite: Diverse client populations require diverse servicing teams. That is true in the traditional retirement savings world, and it’s even more true as we work to create more universal access to retirement savings. Delivering that access in a culturally relevant way matters. Having leaders that represent the entire population we’re working to serve gives organizations the depth to deliver those services far more excellently.
#welldone, DCIIA and your members for this important recognition. Well done, Leaders and Rising Stars for the contributions you are making every day.
Want to know these folks better? Consider reaching out on LinkedIn. Everyone loves a strong network.
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*Fresh!* State Auto IRA Program Metrics | |
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What’s up! February figures are rolling in.
Saver assets are up 13% year-to-date and 1.8x since December 2021 to $727 million. Average account balances remain just over $1,000. Longer term balances are higher.
The four programs shown here now aggregate to over 653,000 funded accounts. For comparison, funded accounts are up 1.5x since December 2021, up about 2.5x since December 2020 and up about 6x since December 2019 – and up in 2023.
Over 146,000 employers are now registered to facilitate a state Auto IRA. Of that number, more than 49,000 have begun forwarding payroll contributions for savers.
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State Facilitated Retirement Programs - Fresh Highlights | |
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California (workforce 19.2 million) – The CalSavers Retirement Savings Board met on February 27, 2023. Key items on the agenda included an update from Executive Director Katie Selenski on staffing model, program participation, funding as of January 31, 2023, and update on employer compliance enforcement, amongst other topics; a report from program administrator Ascensus; and an investment performance report by Meketa Investment Group.
At the meeting, the Board considered re-adopting its Investment Policy Statement, which was last amended by the Board in May 2022. Also included on the agenda was a summary of the provisions included in the SECURE 2.0 Act of 2022 as included in the Consolidated Appropriations Act of 2023.
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Delaware (workforce 499,000) – The Delaware EARNS Program Board met on March 6, 2023. Key items on the agenda covered some Board updates. At the meeting, the Board took a number of actions, including: the selection of AKF Consulting as its program consultant, Standing Committee Resolutions and Charters, Standing Committee Members, and meeting dates for the calendar year 2023. Here’s a good place to stay informed.
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Connecticut (workforce 1.9 million) – The Office of the State Comptroller issued an RFP for program consulting services for MyCTSavings. Responses are due March 17, 2023. You can find more information on the full request here.
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A C T I V E
Kansas (workforce 1.4 million) has introduced HB 2321, the Kansas Work and Save Program Act. The legislation describes a voluntary IRA program and provides administrative duties and powers to the State Treasurer regarding such program.
Missouri (workforce 3 million) has introduced HB 155, the Show-Me MyRetirement Savings Administrative Plan which is a multiple-employer retirement saving plan. The legislation describes the establishment of the Show-Me MyRetirement Savings Board in the office to the State Treasurer. If passed as drafted, the program would have a live date of September 1, 2025. The bill is similar to HB 1732 (2022).
See also the states we highlighted in RSM73 for a complete current view.
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C O M I N G U P
Join where you’d like, and count on us to follow these meetings for you:
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Maryland (workforce 3.2 million) – The next meeting of the Maryland$aves Board is scheduled for May 1, 2023.
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Oregon (workforce 2.2 million) – The next meeting of the OregonSaves Board is tentatively scheduled for May 16, 2023.
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Virginia (workforce 4.3 million) – The next meeting is tentatively scheduled for May 24, 2022
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Best Practices: Impact of universal Auto IRAs with emergency savings features on liquid assets | |
We are wrapping up our short series highlighting hot-off-the research on Auto IRAs. This new consideration comes from David John, AARP Senior Strategic Policy Advisor, writing for DCIIA’s Research Minute – coordinated by Dominika Turkcan of DCIIA’s Retirement Research Center.
Research Minute 3 considers the impact of a universal Auto IRA with emergency savings features on liquid assets. We’re giving you the punch line, and you’ll find more detail at the link above. This study found that for the median household, available liquid assets would significantly increase, particularly for workers at lower income levels. Median white households would see an increase in liquid assets of 93% by retirement, while Black and Hispanic workers would see an increase of 150%. Even under pessimistic economic assumptions, the impact would be substantial, with white workers seeing a 14% increase and Black and Hispanic workers showing a 47% rise.
We like it when households at lower income levels have more liquid assets. You’ll want to see the research minute for more detail on the assumptions associated with these findings.
Last edition we covered Research Minute 1 and Research Minute 2 - which considered the impact of universal Auto IRAs with emergency savings features on household wealth, and Black and Hispanic household wealth.
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Thank you to our friends at DCIIA-RRC and AARP for considering these important questions.
Retirement security matters!/ Lisa
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It’s a short list this week but here are a couple of cool things to check out:
If you’re curious about how plan design impacts outcomes across demographic groups, we are too. Check out this important new initiative - the Collaborative for Equitable Retirement Savings. CFERS contributors are working with anonymized plan participant data to understand how differences in design are driving differences in plan participation, account balances, loan balances, and much more. If you’re interested in being involved, you can learn more here.
On international news, the U.K. government has backed legislation that will expand the scope of automatic enrollment in workplace pensions after official figures revealed that 12.5 million people might not be saving enough for retirement. The new rules would require plan sponsors to start making contributions to their employees' DC plans from the first pound earned rather than only when their salaries reach a certain earnings limit as is currently required. The bill is expected to be approved by the U.K. House of Commons and U.K. House of Lords after it was endorsed by the Department for Work and Pensions. For more, see coverage by Pensions & Investments and LAW360 (subscription may be needed to view these pieces).
And on a more personal note, family stuff is real. And when it’s happening, it is the little stuff that matters. Here’s a moment of reflection.
Consider. This past week a number of strangers have been incredibly kind in ways they did and didn’t realize. An Uber driver shared stories of his six kids. A nurse was really straight with a family member of mine, and then with us. A care manager thought about creative ways to give a bed-bound family member something he really wants, which TBH is a few minutes at home to smoke a cigarette and have a rum and coke in peace and quiet. All different, ordinary things. What they had in common: human connection. So as your world goes swirling around you this spring, think about who you can meet and listen to. It is our connectivity that makes this world a great place to be.
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OK that was so serious! Give us some PIX to bring it home! | |
Next time you are in Portland, you’re going to want this. It’s a 16 oz iced almond milk mocha from Portland Coffee Roasters, no whip. Unbelievably good. Tastes like dessert without being sweet, if that is possible. And if you use the little QR code you can skip the line without setting up an account. It’s super fast and easy. And … on the right … not sure we’re seen it said this way before, but sometimes we need reminders about common decency. #justwashyourhands | |
At DCIIA, things are getting into full swing with a team dinner the night before a series of events. The crew is ready! | |
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That’s it for this edition. ❤️ Hug your people and change the world.
If you like this piece, please stick with us. We’ll be back in about two weeks. If you don’t like it, please unsubscribe below. Comments for us? Please let us know. Want your own subscription? Request one here. All information shared is from public sources or used with express permission.
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Massena Associates provides process, policy, and implementation consulting on retirement savings programs and products.
Our clientele includes public entities, 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.
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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 Defined Contribution Institutional Investment Association (DCIIA) is dedicated to enhancing the retirement security of America’s workers. To do this, DCIIA fosters a dialogue among the leaders of the defined contribution community who are passionate about improving defined contribution outcomes. DCIIA's site provides a range of public and member-specific resources.
The Georgetown Center for Retirement Initiatives, Exec 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.
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