Governor Jared Polis signed the Colorado Secure Savings Program, contained in Senate Bill 200, into law in July of 2020. So, what does this new law entail?
The Colorado Secure Savings Program guarantees that workers at businesses with at least five employees have access to an Individual Retirement Account funded through automatic payroll deductions. Workplaces that don’t provide a retirement savings plan will have to offer a new one through this new law that will be administered by the Colorado state treasurer under the direction of an advisory board.
This new Colorado program is modeled after a savings program in Oregon. Connecticut and California are also starting similar workplace saving program.
The Colorado secure savings plan board of trustees (board) is created and consists of the state controller, the director of the governor’s office of state planning and budgeting, and 7 additional trustees with certain experience who are appointed by the governor and confirmed by the senate. The trustees on the board have a fiduciary duty to the plan’s enrollees and beneficiaries and will be responsible for creating the plan guidelines.
When these plans will be implemented is still up in the air, but it is estimated that plans could be available in the second half of 2021.
We will be sure to keep you updated as new plan information is released. If your business is interested in exploring retirement plans, please contact our office. In addition to group health insurance plans, our team at RSS can help you with 401k plans as well as payroll and HR services.
Source: Denver Post, https://leg.colorado.gov/bills/hb17-1290