RETIREMENT SECURITY MATTERS
A forum for retirement innovation information sharing focused on
states, supporters, and service providers.
October 8, 2020
Colleen Davis,
Treasurer of the First State - Delaware
Since she took office in January 2019, Treasurer Colleen Davis has been shaping the future of Delaware in important ways. She’s helped revise investment policy to generate better returns, and worked on economically sustainable retirements as a member of the Governor’s State Retiree Benefits Task Force. Treasurer Davis is a Bond Issuing Officer and has supported the state in maintaining its AAA bond rating despite recent economic challenges. She sits on a wide range of public boards and the Volunteer Firefighters Fund Committee. And, a lot of the time you’ll see her out on social media, leading by example – giving blood, delivering masks to frontline workers, and bringing fresh information to her constituents in the state. Highlights below, and you won’t want to miss our conversation, here.
Treasurer Davis, can you tell us some of the things that you're focused on in the economic and retirement security space in Delaware?

Yes. Right now we're starting to take a look at developing some type of a publicly offered retirement fund for our uncovered private sector workforce. We're in the very early stages of developing legislation around it. But we recognize that, prior to the pandemic, only 58% of all Delaware workers had a retirement plan available to them at work. If you look at the numbers that are actually participating, it's obviously even less than that. 

It's funny because I had a conversation with a gentleman who is involved in workforce development in our construction industry, a pretty booming industry in Delaware. One of the things he said was they've added auto-enrollment to their family construction business’ 401(k) plan. He said, “I've got guys and gals coming out of their apprenticeships who are auto-enrolled into their 401(k).” And he said, “by the time they're 40 years old, they're just about ready for retirement.”  

That's amazing.

Yes, it's really phenomenal. And it's wonderful to hear from a private sector employer some of the things that they're doing to be creative about supporting their employees. You know, they don't have to do those types of things.

One thing this gentleman said was, “if I'm going to put forth the effort and the time and the money to set up these accounts for my employees, I want them to really take part in them and benefit, truly benefit from them.” I think that we can take the lead from our private sector folks and step out there and get creative in a similar sort of way. So that's one of the things that we're working on.

One of the biggest concerns we have coming through this pandemic is that we've already started to see this divide, this disparity across our workforce. And some of those things that were made available previously will not necessarily be available to as many in the future. And I think that's where we've got to start to get creative … (continued here)

[See also this recap of Delawareans’ interest in retirement.]

State Facilitated Retirement Programs -- The Latest
Total assets topped $115 million as of the end of the quarter, up 28% since June 30 and more than double what they were at the start of the year. Funded accounts continue to climb – pandemic or no pandemic – and are up 15% since June and almost 60% this year. Employer registrations are up 10% quarter over quarter, and facilitating employers are up by 8% and edging toward the 10,000-employers mark. With California employers coming aboard, these three states are likely to cross that mark soon.
California (workforce 17.9 million) -- The CalSavers Retirement Savings Program's recent investment consultant RFP closed October 2. Service scope includes assisting the Board with its annual investment policy review and monitoring investment manager performance. A recommendation and selection are scheduled for the week of October 19. For more deets click here. The next CalSavers Board meeting is currently set for October 19. 
Colorado (workforce 2.5 million) -- The inaugural meeting of the Colorado Secure Savings Program board is set for the afternoon of October 13, 2020. View the agenda and link to join the meeting online. On the agenda: the new Board’s work plan and a discussion of board duties and responsibilities.

The nine-member Board consists of the State Treasurer and eight members appointed by the Governor. In addition to five public representatives with expertise relevant to retirement savings and investments, the Governor’s appointees must include one representative of employers, one representative of employees and one retired Colorado resident. All appointments have been made. You can read board member bios here. 
Idaho (workforce 0.9 million – During the 2019 legislative session, Idaho’s Joint Legislative Oversight Committee assigned its Office of Performance Evaluations to evaluate potential options to increase the availability of workplace retirement plans for Idahoans working in the private sector. You can find their report and its highlights here: Preparedness of Idahoans to Retire: Deciding the State’s Role.

According to the report, only 4 in 10 private-sector workers in Idaho have access to a retirement plan at work. Not surprisingly, the report finds small businesses are significantly less likely to offer savings plans. Idaho workers who lack access to workplace savings plans are disproportionately likely to be younger, less educated, Hispanic and to have lower incomes.

Idaho is the 39th largest state in the Union, and their report logically suggests that Idaho could work with other states to reduce costs and expand offerings. 
Pennsylvania (workforce 6.3 million) -- Pennsylvania’s Treasurer Torsella testified at a September 30 House Finance Committee informational meeting. Topic: an overview of the fiscal condition of the Commonwealth with the Treasury Department and the challenges faced by Pennsylvanians when preparing for their retirement. The Committee did not consider or reference HB 2021, Keystone Saves Program, introduced on March 20 of this year.
Grant's Best Practices: Engagement Beats Management
We recently highlighted identifying stakeholders as an important initial step in the development a successful stakeholder engagement plan. Today we look at stakeholder communication strategies.

According to the Association for Project Management (so much of the thoughtful writing on stakeholder relations comes from the world of project management), communication is “the first principle of stakeholder engagement.”

By now you may have noticed my preference to speak of stakeholder relations in terms of “engagement” rather than “management.” In my mind, the word “stakeholder management” summons the image of stakeholders as obstacles to be avoided or overcome. Certainly, those of us charged with the responsibility of leading efforts to establish retirement savings program proposals have some confidence in our expertise on the subject matter. As a result, it’s only natural that we would sometimes view stakeholders whose ideas deviate … [More great bits ahead - read on here.]
What Else Do You Want to Know?
According to a September report published by Boston College’s Center for Retirement Research, by publication date nearly 70 companies had suspended their 401(k) match, affecting more than 682,000 active participants, or more than 1% of all participants in all 5500-submitting defined contribution plans. Americans counting on matching funds to supplement their savings should consider bumping up their savings rates meaningfully where circumstances allow. Advisors: get on it.

And here’s an interesting piece on children supporting their lower-income parents, catching a bit of a break as those parents start receiving Social Security payments. “When this occurs, the offspring are able to start saving money,” says the article, summarizing comments of researcher Andria Smythe of Howard University.
Just Released! This week we talk with Delaware State Treasurer Colleen Davis on “Treasury Talks,” a video series featuring people from around the state and the country discussing financial information important to residents of the state. The Treasurer covers retirement security in Delaware as part of the series. Check us out here.
... And, just for you ... Pix of the Week!
A Treasurer of the People often finds herself out and about, with firefighters, giving blood, at the state fair, and even with mask-less sheep. Thank you for sharing a snippet of life before, and during, the pandemic, Treasurer Colleen! ♥ We appreciate all you do. 
Out and about? Sometimes you’ve just gotta go. On a recent Wednesday afternoon it occurred to us that it would be very appropriate to pay our respects to Justice Ruth Bader Ginsburg, lying in state.
Respect.

Once you’re on the loose you might as well visit other nearby sites. #maskon! I said, #maskon!
And if you’re feeling really wild you might visit some historic battlefields, like this one.
If you find yourself spending the night in Colonial Williamsburg and needing to stretch your legs, you might run about eight miles to historic Jamestown. If your run app malfunctions it might look like you only ran five miles. And not very quickly. It’s hard to run fast when you’re reading signs.
Jamestown in the morning during a pandemic is very peaceful. Quiet kayaking, hiking, and biking.
When the freeway interchange looks like this, you’re going to be glad you have your phone with you. 
In the car you might exercise your addiction to the NYT Spelling Bee. No, that was not a word. Would have been worth about a million points.
If you play long enough, you might get one of these, which could be why you are addicted.
No, we are not geniuses. But we like it when the NYT tells us we are.
OK, that's a wrap. Thank you for joining us! ❤

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RESOURCES
Looking for another 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.

We talked recently with the articulate, thoughtful Delaware State Treasurer Colleen Davis about the issues facing state treasurers today, including retirement security. We're pleased to be of support. Watch this space for more information and a link.