Colorado’s state-run retirement program, called Colorado SecureSavings, is set to launch in early 2023. Employers with five or more employees must either facilitate the program or offer a qualifying retirement plan to employees.
The Details:
Colorado SecureSavings is a state-run payroll withholding savings program using Individual Retirement Accounts (IRAs). The program doesn't require, or even allow, employers to contribute to the IRAs. However, unless exempt, employers are required to facilitate the program by registering, enrolling employees, and withholding/remitting employee contributions.
Colorado businesses must facilitate Colorado SecureSavings if they:
- Have been in business for two or more years;
- Employ five or more employees who have worked for them for at least 180 days; and
- Don’t already offer a retirement savings plan for any employees.
Employers should receive notices directly from Colorado SecureSavings via mail or email when the program is open for registration and enrollment in early 2023. The notices will have an access code for employers to use when registering and should include a deadline. If employers already offer a qualifying retirement plan but still receive a notice, they will need to certify that they are exempt by the deadline.
To register or claim exemption, employers will need their EIN and access code for Colorado SecureSavings. After registering, covered employers will have to provide employee information and payroll information to enroll employees. The Colorado SecureSavings portal will then send each employee a notification. Employees will have 30 days to decide to stay enrolled, opt out of participating, or customize their account settings. After this 30-day opt-out period, employers will need to start payroll deductions for employees who choose to remain in the program.
Next Steps:
- Watch for the notice from Colorado SecureSavings.
- Register and enroll employees (or certify exemption) by the applicable deadline.
- Visit the Colorado SecureSavings portal for more information.
Please contact your ADP service professional if you have any questions.