Colorado Secure Savings Program Passed

AT A GLANCE

• Colorado Governor signed SB20-2020 which establishes the Colorado Secure Savings Program to implement a statewide retirement savings program.
• The Act tasks the Colorado Secure Savings Board with developing and administering the program.
• Effective date is still TBD but anticipated in 2021.

Colorado Secure Savings Program

The Colorado Secure Savings Program establishes a statewide retirement program for employees who do not have access to a retirement program at work. The Act applies employers with five (5) or more employees who do not already offer a retirement plan. Generally, the program will automatically enroll employees into an individual retirement account (IRA), with the option to opt out.

The program will be created and administered by the Colorado Secure Savings Program Board. The board is required to adopt rules regarding enrollment in the program, contributions to and withdrawals from program accounts, the process for employer exemptions from offering the program, and required disclosures. The exact effective date has not been announced, although it is anticipated that a phasing in approach will start sometime in 2021.

Next Steps

Colorado has become the latest state to implement a mandatory retirement savings program for private sector employees. Paylocity will be monitoring the rulemaking process and will provide updates as needed.  

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.