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

Sarah Godlewski, Treasurer,
State of Wisconsin
This week we catch up with Treasurer Sarah Godlewski , who’s been leading Wisconsin’s Retirement Security Task Force. With a 3.1 million-person labor force, Wisconsin ranks in the top half of states. And it’s fortunate to have its share of innovators.

At the same time, reports in 2017 and 2019 identified meaningful retirement security gaps and opportunities. (You can find both reports here ( scroll). Not ones to stand by, Wisconsinites
are taking action. In this edition we get you a little closer to that action. You’ll find a skiff across our conversation below, and a deeper dive here .

Treasurer, retirement security is such a hot topic around the country – have you found anything that’s unusual about Wisconsin?

Yes, we’ve learned some important things. We’ve identified that Wisconsin's population is already aging faster than the national average. Our aging population is just growing more quickly. By 2030, we’re projected to have a 60% increase in Wisconsinites who are 65 plus. If you think about that, if we do nothing -- and people can't live off their social security alone – the expectation is that there'll be 400,000 elderly Wisconsinites living in poverty by 2030.

[continued below]
State Facilitated Retirement Programs in Rollout and Study Mode
Colorado (workforce 2.6 million) – Colorado’s retirement security legislation was signed into law this week by Governor Jared Polis. The legislation calls for establishment of an auto-IRA program that will cover workers in the state whose employers don’t offer plans. Employers with five or fewer workers will be exempt. The program’s implementation will be led by State Treasurer Dave Young, interviewed here in April. Next steps for the state will be appointment of members to a Colorado Secure Savings Program Board by September 15. The program is likely to be staffed by an Executive Director, a new position in the Treasurer’s office, and to seek implementation in 2021.
The CalSavers Retirement Savings Board is scheduled to meet on July 27 . Although the agenda has not yet been posted, the board’s Program Consultant RFP closed on June 12. We will be watching to see whether there will be a recommendation and a decision.
The OregonSaves Board is scheduled to next on August 4 . 
Illinois’ Secure Choice Board is scheduled to meet on August 11 .
The next meeting of the Connecticut Retirement Security Authority’s board is scheduled for July 17 . In April the board selected Sumday, a BNY Mellon subsidiary, as its program administrator. Watch this space for news of implementation plans and timelines. 
The MarylandSaves board is expected to meet sometime in the next 30 days. Their RFP for program administration closed on April 30 so it is possible there will be a recommendation and decision at the meeting.
Best Practices and Lessons Learned: How to get a
government-sponsored retirement savings program to the
finish line (or even to the starting line!)

No matter how apparent the crucial need to increase retirement savings and security for workers may be, establishing the legal authority for a new government-sponsored retirement savings program is no small feat. Fortunately, an increasing number of states (and a few municipalities) have paved the way. Their successes can provide valuable guidance for all who follow.

For example, check out this brief but instructive history of CalSavers to learn how leaders in California steadily built support through a multi-year legislative process that eventually led to the establishment and implementation of CalSavers.

In the coming weeks, this newsletter will periodically include a new feature to highlight best practices and lessons learned. This will include topics such as developing state-specific research on the retirement savings gap and access (or lack thereof) to workplace savings plans, building coalitions of support, anticipating and addressing opposition, developing effective communications strategies and seeking input on program design and administration features tailored for success within the practical and political particularities of a given state.  
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New Research: This week DCIIA has just published Initial Impacts of Coronavirus on Global Defined Contribution Plans . We found this snippet interesting: “… urgent or emergency savings plans delivered at the workplace could be reaching an inflection point in terms of recognized employee need and/or policy acceptance. Workplace savings are no longer seen as only a retirement savings vehicle. They are also beginning to be viewed as a multi-purpose vehicle for savings and for emergency liquidity.” See the 6-pager for highlights on country-level variations in access to retirement savings. (This piece was co-authored by John Mitchem - @jm3global - who graced our pages in June)
... Wisconsin, continued from above
If we can say it, you’re newer in your role and a younger state treasurer – how did this catch your eye

One of the things that went across my desk was the stat that 88% of Wisconsinites do not feel financially secure and wish they had saved more for retirement. This is a concern of Governor Tony Evers’ as well.

I was thinking even about my own retirement story. I remember turning 30 -- I was really worried because I had not saved a dime for retirement. I had not saved a dime. I reached out to my HR department saying, I need to sign up, help! And they said to me, well, Sarah, we automatically enrolled you. So you've been saving for the last seven years. What a relief! Seems like everyone should have that.

You’ve been leading Wisconsin’s Retirement Security Task Force since 2019

We were elected in November of 2018 – following that the Governor wrote retirement security analysis into his budget and identified Treasury to lead it. So we kicked it off right away. We started in the spring of 2019 and held our first task force meeting in October. (You can find the Task Force’s work in progress here).

Interesting – knowing it’s early, are you seeing good ideas in some of the spaces you’re studying?

Yes. We’ve narrowed to three focus areas. The first is Tax and Incentives. This group is looking at how can we potentially leverage Wisconsin's tax code to encourage savings and to be creative with supporting small businesses.

We’re calling the second bucket Accessibility and Saving. And that's looking at what would Wisconsin's “Work and Save” model be. What are some lessons learned from other States, like Oregon and California and New Jersey? And what could be right for Wisconsin.

And then the third committee is the Universal Savings strategy, which is trying to address that circumstance for people who say, I just don't make enough money consistently to put away or, I wish I would've saved earlier.

We like the idea that everybody born in the state of Wisconsin would get an account that helps them to start saving for retirement. We call it 401Kids. In the hospital as a new mom, you would get information advising that we are opening this account for you. You can opt out. But if you do want it, we're going to put $100 or $200 in it. And then it would be held at a custodian and invested until the child is 19 and they can decide then whether they want to roll it over into a workplace 401(k), or into the state work and save program.

Speaking of kids – tell us about Baby Hartley!

Well you know there’s a new Treasurer-in-the-making at our house, Hartley. It's hard to believe that he will be seven months old on Friday. We've been spoiled. The silver lining of this pandemic has been that during this period I'm not on the road as much, so I get to spend a lot more time with him. We’re lucky – he sleeps over 10 hours a night. And he can't crawl yet, so he just stays in one spot. That's another nice thing, but that's about to change quite soon.

Short lived. And then you'll probably find him riding the fiscal watchdog.

Thank you Treasurer Sarah Godlewski! This is an excerpt from a longer conversation. For the rest of our chat, and more detail, check this out. And if you’re interested in talking with the Treasurer and her team yourself, you can reach her here .
... And now, some snappy Pix!
We are saving the best for last, so we’re going to start with your little slice of Oregon for the week.
This chunk of deliciousness is Neahkahnie Head, at Manzanita on the Oregon coast. This weekend we had minus tides, super high and super low. At low tide here you can see how much beach is exposed – and it’s super-clean, because the high tide washed everything away. And because we’re Oregonians. Neahkahnie Mountain’s trails offer some of the coast’s most scenic overlooks. If you get there this summer you’ll beat us to it. At its southern foot the little town of Manzanita welcomes you with good food, good people, an artsy culture, and lots of natural beauty. If you go, consider the Ocean Inn – simple, down to earth, clean, steps from the beach. Dog friendly. And if you are training for a marathon like we are, the beach offers miles of running in both directions.

Now to the good stuff! Inquiring minds need to know …

Is it true that Wisconsin has the country’s cutest fiscal watchdog ? Tanner! Nice to meet you. We’ve seen some good-looking dogs in Treasury offices, but you take the cake.
What does a Treasurer-in-the-making look like? Hartley. So handsome. Also possibly the cutest T-I-M in the country. What’s that – running for office in 2044? We’ll be there!
Thank you Treasurer Sarah, for sharing your family with us – because that’s what it’s all about . Shout-out to that Treasurer’s assistant to your left. 😉
♥

OK, that's a wrap.

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. 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.

In the next edition, we talk with Jeffrey Rosenberger, COO of Guideline, on innovative approaches for small employers and what he sees next in the retirement savings world.
RESOURCES
Looking for another great retirement savings innovation resource? 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. This popped up on their SquaredAway blog this week and really got us thinking.

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 .

MEPS and PEPS : We’re speaking at an industry-focused conference alongside some experts you won’t want to miss on August 27. More info here . Hosted by Chris Carosa’s FiduciaryNews with over 130 attendees at last count.