RETIREMENT SECURITY MATTERS
A forum for retirement innovation information sharing focused on
states, supporters, and service providers.

MarylandSaves’ investments and program administration RFP closed on April 30 . Oral presentations are scheduled for this month.
The Connecticut Retirement Security Authority's Design and Investment Committee met on May 15 and May 28 to discuss the bid proposal for Record Keeper RFP pursuant to 1-200(6)( E) and 1-210(b)(24). The Authority is set to meet again on June 19 .
States Innovation - Active Legislation
States are on the move again.
Colorado (workforce 2.6 million) – Colorado’s retirement security legislation passed the Senate on May 26 and is now in Appropriations.
Ohio (workforce 5.2 million) – introduced House Bill 645 on May 19, “to establish an auto-enrollment retirement savings program for private sector employees”. The bill appears to describe a defined benefit-style program, which, if effected, would be a new flavor in this space. The bill was referred to the House Commerce and Labor Committee on May 27.
What Do Workplace Savings, Treasurers and the World Have in Common: an Interview with John Mitchem
This week we catch up with John Mitchem of JM3 Projects. If you’ve ever met John, you’ll know he is an enthusiastic proponent of retirement savings innovation around the world. He focuses on thought leadership strategies and communications for financial services organizations and has authored a wide range of relevant works.

John was a contributor to the well-known book, From Here to Security: How Workplace Savings Can Keep America's Promise, by Robert L. Reynolds, President and CEO, Great-West Financial and Putnam Investments, with Lenny Glynn and John Mitchem. This week he’s writing just for us, on the subject of Global Defined Contribution Savings Systems - Implications for U.S. State Treasurers.
John Mitchem, Principal
JM3 Projects
Once you get John chatting, you’re going to get a wealth of resources and information. Here’s an excerpt of some of the goodies he shared.

John, you are a busy guy – what have you been up to?

Yes, I’ve got a bunch of things going here. Of interest to Treasurers and providers in the savings innovation space, for the past two years I've been researching Global Defined Contribution systems and the creation of, and public policies aimed at the creation of, those systems.

That’s interesting – so there’s a global connection to what we’re doing - tell us more

When I look around I see models of workplace savings that are analogous to the CalSavers-style secure choice effort. The closest one we all know about is probably NEST – the National Employment Savings Trust in the UK. Because it is a sort of a government administered plan that is alongside private plans. So they have a master trust for private investment in the UK. And then beneath that they have NEST for the same reasons that we have CalSavers: small companies, low income workers, generally don't have traditional private sector DC or 401(k). It's probably unrealistic to expect fully private solutions for everyone. And that's where these things like NEST and CalSavers can step in.

Now in Australia is a little bit different. I mean, Australia, it's corner to corner mandatory. Every employer has to provide a superannuation plan. So they went with one big plan that covers the sections that we cover in both the secure choices and the private sector.

What have you learned about what these programs have in common?

Behavioral finance tells us the way you get middle class workers to accrue real assets is through payroll deduction. We just know this, right? It's automaticity. I’ve heard people say, “well IRAs are not like that because they're personal.” But experts will tell you that a very very large percentage of IRAs began life as 401(k)s. So behavioral finance and American historical experience suggests that it's got to be in the workplace and it's got to be through payroll deduction.

The advent of state IRAs and NEST-type of structures -- they're going to be replicated all over the world, for the same reasons we have them here. Because the private industry can't really profitably service the very low income, very small company market. And in very many cases state or government-based auto-savings programs will be a backstop for a private solution like a 401(k) or master trust and they're going to be everywhere.

So states are important, but what does this mean for service providers

I think that global defined contribution systems could be a big export market for the US financial services industry. You know, these guys know how to build these portfolios. They know the operations, they know how to use behavioral finance, they know how to build really cool phone-based apps that enable savers to see right where they are, that give them a sense of connectedness and competence.

So, the DCIIA and SPARK membership are interested in knowing what's happening globally. We’re working together on a Summer Policy Series where I’ll be presenting, with others, some of this global perspective. Participation is free – the series starts July 15 – and you can sign up here. Free.

Thank you John! You can follow John on Twitter: @JM3Projects , @JM3Global , and @JM3Wealth . You can engage with John and other experts on LinkedIn by joining this Global Defined Contribution group . If you want to connect with John directly you can reach him here . 
Be There! NAST TMTS - Next Week+
If you’re looking for a great place where you can go deep and learn a lot about states’ innovation, and more, the Treasury Management Training Symposium (TMTS) offered by the National Association of State Treasurers is the place for you. Yes, no offense, it is a little bit nerdly. And there’s a cost - $350 or $550 depending on whether you’re a member. But at that rate you’ll get 70 hours of livestreaming content between now and August, with an opportunity to engage, ask your own questions, meet people, and access all the content afterward. As a NAST veteran, I can’t say enough good things. And you can join Colorado, Illinois, Oregon, Pennsylvania, Vermont and I on June 10 for a kickoff session focused on Retirement Security. Take a peek, you’ll be glad you did. Register here .
Hear here - Well deserved recognition
Kudos to J. Mark Iwry for his recognition as an Innovator by InvestmentNews this week. Mark is a mover & shaker in our world; former Senior Advisor to the Secretary of the Treasury and Nonresident Senior Fellow, Brookings Institution, and much more. Well done!
... And, you made it to the photos!
We think we can agree, John Mitchem looks very serious in his official photo, above. But it wasn’t always that way. 
Once upon a time, just like you and me, John was alternatively a sheriff and a bad guy, blasting around Virginia in his Jeep.
When we asked John how he is faring in the pandemic, he says not too bad – he’s got a pretty pleasant remote office.

We agree!
And if you look closely we think you’ll see that John appears to be surfing our website and reading about Treasurer Torsella in Retirement Security Matters.

John’s pandemic silver lining? Networking. Yes, networking. “I've made a much more proactive effort to reconnect with people. And it's been very productive.”
Back in Oregon, adventures abound. We found our favorite-named Oregon town and made a few bad jokes about it. Yes there was a T-Rex lurking nearby.
Neighbors send friendly greetings: it’s good to be home.
We get excited about LaunchAmerica and go crazy over astronauts … thank goodness someone else was driving!
We get to see our parents – safety first! No hugging!! And we prepare to run a marathon in honor of our brother Jay Massena in DC in October. 
♥♥♥

This is not a political space, but this feels like the right way to sign off this week. Let’s be the change we want to see in the world. Opportunity is everywhere.

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