In 2019, the Colorado legislature passed SB20-200 which allowed the Colorado SecureSavings Board to create a retirement program. The program was designed to help nearly 940,000 workers access a retirement plan through their employer.
Employers are now required to offer employees some sort of retirement savings plan, however, this can be difficult for most employers due to added expenses.
The Colorado SecureSavings plan allows employers to register their employees within the system without the added fees. In fact, “employers are neither required, nor permitted, to match employee contributions to the program,” the website states.
Employees receive a notice through Colorado SecureSavings and can decide to participate. They have 30 days to make a decision and choose a savings rate that will be automatically deducted from their paycheck. However, if an employee does not choose to opt out they will automatically be enrolled in the program and 5% of their gross income will be contributed to the savings plan after taxes have been deducted, according to the site.
The plan follows the employee from employer to employer, allowing the employee to keep their savings.
Employers will need to decide on their retirement plan options by Dec. 31.
