Colorado Secure Savings Program

Year enacted

2020

Status

Not yet active; a pilot program is expected to launch in October 2022. Full program enrollment is slated for 2023.

The board approved a memorandum of cooperation with New Mexico’s Work and Save (a voluntary IRA program) to form a partnership for their auto-enroll IRA programs, making it the first auto-enroll IRA multistate program in the country. 

Employers affected

Mandatory for employers with five or more employees who have been in business for two years and haven't offered a qualified retirement plan in the last two years. To encourage participation and defray costs, the state plans to provide grants to employers with 5 to 25 employees in an amount not to exceed $300. 

Type of account

Roth IRA (default) and traditional IRA (optional)

Automatic enrollment

Yes

Auto-escalation

Yes (1% per year, up to 8%, with option to increase to 10% in the future)

Default contribution rate

5%

Employer contributions

Not permitted

Investment options

To be determined by the board

Default—The board will determine the investment option to serve as the default for participants who fail to elect an investment option.

Fees

Annual fees are capped at 1.0% of the total value of the program’s assets for the first five years of the program, and for the sixth year and subsequent years, capped at 0.75% of the total value of the program’s assets. The state bill doesn't specify whether fees are paid by employees or the owner, but suggests they're paid by employees.

Website

treasury.colorado.gov/colorado-secure-savings-program