Products & Services May 1, 2025

Empower Launches Zero Fee Index Fund For Retirement Plans

The company says the fund will offer retirement plan participants higher growth potential by removing management fees.

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Empower Financial Services Inc. launched a zero-fee index fund for retirement investors seeking to save through workplace retirement plans, the retirement plan and wealth services provider announced Wednesday.

The first such offering in the industry, according to the company, the “Empower S&P 500 Index Separate Account” offers retirement investors broad market exposure free of management fees.

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The absence of fees is intended to allow retirement plan participants higher growth potential for their retirement savings.

“We are driven to help make investing more accessible and affordable,” said Rich Linton, Empower’s president and chief operating officer. “With this zero-fee index fund, we believe we are optimizing the value that plan participants can receive for their invested dollars.”

The new fund will be available to all investors saving for retirement through defined contribution plans, such as 401(k), 401(a) and 457(b) plans, according to the release. Investors in other employer-sponsored plans, such as pensions and other qualified retirement accounts, will also have access to the fund.

“Our aim is to give investors the best chance to maximize their returns on their investments,” said Jonathan Kreider, Empower’s executive vice president and head of investments. “This fund puts every dollar to work for investors, helping them keep more of what they earn.”

The fund aims to track the total return of common stocks in the S&P 500 Index. BlackRock Inc. will serve as sub-adviser of the fund.

The latest offering builds on the company’s institutional separate account platform, which includes more than 100 strategies with more than $80 billion in assets under management. Like a collective investment trust, institutional separate accounts pool assets from more than one retirement plan to achieve economies of scale and pricing.

Empower administers more than $1.8 trillion in assets for 19 million investors, as of December 31, 2024.

Products & Services May 1, 2025

Nevada Joins Interstate Auto-IRA Consortium

The consortium, led by Colorado Treasury and administered by Vestwell, now includes five states—Colorado, Delaware, Maine, Nevada and Vermont.

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Nevada has joined Colorado’s interstate alliance of state-facilitated auto-IRA programs designed to help private sector workers whose employers do not provide retirement plans save for retirement, according to a Wednesday announcement by the Colorado Department of the Treasury.

With the addition of Nevada, the partnership now includes five states—Colorado, Delaware, Maine, Nevada and Vermont—representing nearly $130 million in assets under management, according to the release.

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The collaboration enables states to share infrastructure and reduce costs, while expanding access to Roth individual retirement account plans for workers who lack employer-sponsored retirement options. Programs in the consortium are administered by Vestwell, in partnership with BNY Mellon.

“With the success of Colorado SecureSavings and similar programs across the country, the growth of the Partnership for a Dignified Retirement represents the next breakthrough in expanding low-cost, portable retirement savings opportunities for private sector workers,” said Colorado Treasurer Dave Young in a statement. “We are thrilled to welcome Nevada to the consortium and look forward to working with additional states in the coming months.”

According to Georgetown University’s Center for Retirement Initiatives, 20 states and two cities have auto-IRA programs, as of January 1, including 17 auto-IRA programs. Additionally, seven of the 17 auto-IRA programs were established under partnership agreements.

State auto-IRA programs totaled $1.93 billion in assets as of March, according to Georgetown.

“By working collaboratively, we can strengthen financial resilience within our respective programs to ensure that workers—especially those that have traditionally lacked access to retirement savings—have the tools they need to plan for their future,” said Nevada Treasurer Zach Conine, who chairs the board overseeing the state’s new retirement program, in the announcement.

Nevada passed legislation in 2023 to establish its auto-IRA program, the Nevada Employee Savings Trust. By joining the consortium, it will adopt Colorado SecureSavings’ operational framework, while benefiting from economies of scale and reduced plan fees.

The Colorado SecureSavings program, launched about two years ago, has grown to more than 76,000 savers and 17,000 participating employers across the state.

Douglas Magnolia, the president of Vestwell State Savings, said the partnership sets a new precedent for multistate collaboration.

“This launch is proof that when states come together, impact follows,” he said in the announcement.

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