For Immediate Release
November 9, 2021
Colorado and New Mexico Enter Historic Partnership for Automatic Retirement Savings
DENVER, COLORADO: Today, the Colorado Secure Savings Program and New Mexico Work and $ave signed a first-in-the-country Memorandum of Cooperation (MoC) to pursue a formalized partnership agreement for their auto-enroll IRA programs.
"With this historic partnership, Colorado and New Mexico are working to ensure that a dignified and sustainable retirement isn't only a dream for the privileged few. This is one step in the right direction for a truly portable retirement benefit - one that carries across state lines."
Dave Young, Colorado State Treasurer
“This retirement savings partnership between Colorado and New Mexico exemplifies the best in forward thinking and collaboration. Together Colorado and New Mexico can forge a pathway by working with private sector employers and workers to build retirement savings security for those who might otherwise be left behind.”
Tim Eichenberg, New Mexico State Treasurer
“This partnership allows us to get more value out of the program we are already working to establish, and will benefit participants in the future by allowing us to reduce fees sooner, once the program’s implementation begins in October 2022. The partnership is open to working with other states as well.”
Hunter Railey, Director of Colorado Secure Savings Program
“Our partnership illustrates a shared vision and a commitment by Colorado and New Mexico to build a low-cost, portable retirement savings program for our states’ private sector workers. By combining both states’ resources and saver participants, the partnership will ensure the program is operational sooner, self-sustaining sooner and workers can start saving sooner!”
Claudia Armijo, Executive Director, New Mexico Work and $ave
This partnership will be the first auto-enroll IRA multi-state program in the country. State partnerships can provide a cost effective, efficient way for states to fill their retirement savings gap and ensure everyone has an accessible, easy to use option to save for their future. With the successes of the single-state Auto IRA savings programs in California, Illinois, and Oregon, the Colorado and New Mexico partnership represents the next step in extending low-cost, portable retirement savings options to private sector businesses and their workers.
The MoC highlights areas of collaboration including shared program administration and financial services, marketing and outreach support, program evaluation and research, as well as data collection and participant privacy.
Participants will benefit from lower fees achieved through creating economies of scale, as well as a truly portable benefit that follows workers across jobs and state lines. Additionally, the partnership is anticipated to provide benefits to Colorado and New Mexico by shortening the timeline to program self-sufficiency.
Colorado’s new Secure Savings Program and New Mexico’s Work and $ave IRA Program are retirement savings plans for private sector workers who currently do not have access to workplace retirement savings plans. The partnership will offer an accessible retirement savings option to almost one million Coloradans and their families, more than 40% of the state’s workforce, and nearly 430,000 New Mexicans who do not currently have access to a retirement savings account or plan at work.
Private sector workers, including those who work part-time, are self-employed or seasonal, will have an easy way to save for their future. Instead of being tied to the employer like in a traditional retirement plan, the partnership auto-IRA program will be tied to and travel with the employee if they move to a different job. Research indicates that many workers residing near the border between Colorado and New Mexico work in both states. Those participants will be able to carry their automatic retirement savings across state lines, ensuring they can maintain an enduring and truly portable retirement program.