Colorado SecureSavings is a state-sponsored retirement savings program designed to help employees who do not have access to an employer-sponsored retirement plan save for retirement through a Roth Individual Retirement Account (IRA). Employers in Colorado who have been in business for two or more years with at least five employees who have worked 180 days or more must either offer an existing qualified retirement plan or participate in this program. Employees are automatically enrolled after 180 days of employment at a default savings rate of 5%, which increases annually until capped at 8%, but they can adjust or opt out anytime. The program is employer-friendly, with no cost or fiduciary responsibility for employers, and is administered through payroll deductions directly to employees' Roth IRAs. Key features of Colorado SecureSavings include:
- Automatic employee enrollment with opt-out options
- Employee contributions only; employers do not match contributions
- Annual administrative asset fees paid by employees
- Compatibility with existing payroll systems
- State oversight with fiduciary duty and public accountability
- Aims to close retirement savings gaps for many Coloradans without access to workplace savings plans
The program benefits businesses by providing an easy way to offer a retirement savings benefit with minimal administrative burden and no employer fees. It also supports employees in building a secure financial future through consistent saving and professional management of their retirement accounts.
