Virginia’s State-Facilitated Private Retirement Program Scheduled to Launch in 2023
Virginia529 selects Vestwell to administer RetirePath VirginiaSM.
RICHMOND, Va.— RetirePath Virginia will open by July 1, 2023. The program will provide Virginians who don’t otherwise have access to a workplace retirement savings plan the option to save a portion of their pay in a professionally managed IRA account. State legislation directs Virginia529 to establish and oversee the program. Virginia529SM selected Vestwell as the RetirePath Virginia program administrator and BlackRock as the investment manager.
“Almost half of Virginia workers do not have access to a retirement savings plan through their employer,” said Virginia529 CEO, Mary Morris. “RetirePath Virginia is an innovative solution to address the Commonwealth’s growing retirement savings divide. The program is a logical expansion of the Virginia529 mission, boosting access and promoting financial wellness to even more Virginians.”
Under state legislation, private-sector Virginia businesses meeting certain criteria — 25 or more eligible employees, operating for more than two years, and not offering a retirement savings option — will be required to enroll in RetirePath Virginia. The pilot program is scheduled to begin in early 2023 and phased enrollment will start by July 1, 2023. RetirePath Virginia will be simple to administer and fee-free for employers. Employee participation will be voluntary.
Vestwell, in partnership with BNY Mellon, will provide recordkeeping, custodial services, and customer support to participating RetirePath Virginia employers and employees. Vestwell administers state-facilitated retirement savings programs in Oregon and Connecticut, as well as programs in development for Maryland, Colorado and New Mexico.
“We’re proud to partner with Virginia529 to power the innovative RetirePath Virginia program,” said Aaron Schumm, Founder and CEO of Vestwell. “All Americans deserve an affordable vehicle to save for their financial future, and Virginia is bringing us one step closer to closing the savings gap.”
“RetirePath Virginia is an essential program to help make savings more accessible for all Virginians,” said Douglas Magnolia, President of Vestwell. “We’re thrilled to partner with Virginia529 and offer a personalized savings experience on our state-of-the-art platform while reducing the administrative burden for the state and its small businesses alike.”
Investment manager BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, was selected to be the primary investment manager for the RetirePath Virginia program. BlackRock provides investment services for other Virginia529 programs.
Virginia529 is responsible for RetirePath Virginia program design, oversight and outreach activities. To support the agency’s leadership and board, Virginia529 established a retirement program advisory committee with experts in retirement plan design, investment management, and business.
Learn more about RetirePath Virginia and subscribe to updates at Virginia529.com/retire.