Mandatory Retirement Program for Colorado Employers
Colorado has implemented a mandatory retirement program, Colorado SecureSavings, for all eligible employers that do not offer a retirement plan to their employees. Companies are eligible to participate in the program if the business:
- is registered to conduct business in the state of Colorado
- has at least five W-2 employees who have worked for them for at least 180 days
- has been in business for two or more years; and
- doesn’t currently offer a qualified retirement savings program to its employees.
Currently, nearly 940,000 Colorado workers lack access to a qualified retirement savings plan at work. To address this need, the Colorado Legislature passed a law in 2019, SB20-200, that created Colorado SecureSavings to make it easier for more workers to save for their retirement. The program uses automatic enrollment and savings through payroll deductions to help employees save. Eligible employees can opt-out if they don’t want to participate. If they don’t opt out, automatic payroll deductions will ensue.
Employers who already offer their employees a traditional pension, a 401(k) plan, a 403(b) plan, a SEP Plan, a SIMPLE IRA plan, or a governmental deferred compensation plan can certify their exemption from the program. Otherwise, they will need to offer an account from Colorado SecureSavings.
There are no employer fees with Colorado SecureSavings, and employers are neither required nor permitted, to match employee contributions to the program. Employers should not provide any advice about the program or investments; their responsibility is to facilitate the program only. Employees can visit ColoradoSecureSavings.com or call 1-844-711-5001 for more information.
Employer Registration Deadlines
All eligible Colorado employers are currently able to register for the program. As your company’s registration deadline approaches, you will be sent an invite and reminder via email or mail which will include an Access Code that you will need along with your EIN to register. The registration deadline varies based on the number of employees:
- 50+ employees – company must register by March 15, 2023
- 15-49 employees – company must register by May 15, 2023
- 5-14 employees – company must register by June 30, 2023
Failure to timely register or apply for an exemption may result in a fine of up to $100 per employee per year, up to a maximum of $5,000 per year.
Click here for more Program Details for Employers, to include a list of Frequently Asked Questions.
- ASA Staffing Today, 12/27/2022. “Colorado Implements SecureSavings Program for Employees Without Access to Employer-Sponsored Retirement Plans”, The National Law Review, December 16, 2022, Ruth Anne Collins Michels, Rebecca M. Lindell.
- Avionte Staffing Software | Tip of the Week, Compliance Corner, 12/13/2022.
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