Colorado Mandates Retirement Savings Plan January 1, 2023

Is secure savings program mandatory in Colorado?
Employers must implement the Colorado Secure Savings Program for their employees if they have: Five or more employees at any time during the calendar year. Been in business at least two years, and Not offered a qualified retirement plan in the preceding two years

The Colorado Secure Savings Program went into effect on January 1, 2023.

For churches and organizations in The Episcopal Church in Colorado, there is a Constitution and Canon of The Episcopal Church and a Diocesan-wide policy in place for all lay employees who work 20 hours a week or more, must be enrolled in The Church Pension Group Lay Defined Contribution Plan within 30 days of their hire date. Priest employees have the pension plan starting at 8 hours per week.

This is a state link and further information about the law: https://www.amgnational.com/insights/colorado-secure-savings-program-mandate-options/#:~:text=The%20Colorado%20Secure%20Savings%20Program%20went%20into%20effect%20on%20January,non%2Dcompliance)%20in%202024.

WHAT ARE THE KEY FEATURES OF THE COLORADO SECURE SAVINGS PROGRAM?

The Colorado Secure Savings Program went into effect on January 1, 2023, and the state’s mandate will start being enforced (with potential fines for non-compliance) in 2024.

A Colorado employer in business two or more years with five or more employees and no current qualified retirement plan must facilitate employee participation in Colorado SecureSavings, which will be administered through automatic payroll deductions through existing payroll systems. Eligible employees will be auto enrolled in a Roth Individual Retirement Account (IRA) at 5% of pay with an automatic increase of 1% each year, up to a maximum of 8%. Employee participation is voluntary; employees may opt out, increase or decrease the contribution rate, or re-enroll at any time. Employers do not have to match contributions, nor are they considered fiduciaries. The Colorado Secure Savings Board acts as fiduciary, having discretion over the program’s design and the selection and monitoring of its investment options. In case of noncompliance, employers may be liable to pay an annual fine of up to $100 per eligible employee per year, up to $5,000.