The Colorado Secure Savings Program, set to begin in 2023, requires any company with five or more employees that does not already offer a retirement program, to enroll. Employees can opt-out or reduce their contributions.
The state’s goal is to provide retirement coverage to more than 40% of privately employed individuals who do not have retirement savings. If employers chose the Colorado Secure Savings Program over a private retirement plan, the program would coordinate with existing organizations to increase financial education and awareness in the state.
Proponents of the savings program highlighted benefits:
Workers will have an easy and accessible way to save for their future
• Workers are automatically enrolled via their employer and may opt out if they choose
• Program Board will set contribution rate for payroll deduction
• Workers will have investment options within their IRAs
Accountability for employers and employees:
• Professionally managed, with oversight by Board chaired by the State Treasurer
• Board is bound by fiduciary duty
• All matters impacting the Program are debated in public with ample opportunity for stakeholder input
The Program will provide a high-quality, competitive option for workers.
• Low fees for plan administration
• Easy to use platform
• Low obligation for workers
Self-employed and 1099 individuals have the option to participate as well.
What if I already offer my employees a retirement plan?
• Great! No action needed on your part
What if I do not wish to participate?
• If you have at least five employees and you do not want to participate in this plan then your company should establish a separate retirement plan option outside of the State program. Companies’ legal liabilities are limited to refusing to participate in the plan when they don’t already offer another, and that carries fines. These fines have not yet been defined.
July 2022: Rules are finalized
October 2022: Pilot program launches
2023: Enrollment begins
Please contact your BiggsKofford professional for more information