Business Owners Must Take Action to Comply with State Law
Nov. 25, 2024 (DENVER) - The Colorado Department of the Treasury is encouraging businesses to enroll in the Colorado SecureSavings program, which provides state-facilitated retirement plans for employees, by the end of the year.
“We want all Coloradans to retire with dignity, whether employers join Colorado SecureSavings or set up their own plan,” said Colorado State Treasurer Dave Young. “We designed this program to be a quick and easy way to comply with the law while helping more employees save for their futures.”
State law requires businesses that have been operating for two or more years and employ five or more workers to offer a retirement plan by Dec. 31, 2024. The Department has mailed reminder letters to employers that have received previous instruction, outlining the steps to register for Colorado SecureSavings or file an exemption.
An estimated 1.4 million workers lack an employer-sponsored retirement plan, affecting more than 40% of Colorado’s private sector workforce. To address this gap, the Colorado General Assembly passed Senate Bill 20-200, establishing the retirement plan requirement and creating the Colorado SecureSavings program.
“Colorado SecureSavings ensures more Coloradans have access to the financial services individuals and families need to thrive,” said Hunter Railey, Director of the Colorado SecureSavings Program. “We have registered over 15,000 employers so far, advancing our goals to close the retirement savings gap and reduce the burden on Colorado taxpayers.”
Online registration takes 20 minutes or less to complete and integrates with businesses’ payroll processes. Workers contribute to Roth IRAs through automatic payroll deductions and can access their savings at any time, even after changing employers. Employees may also opt out of the program within 30 days of enrollment.
“It only takes five minutes a week to give my employees an opportunity to save for the long term. It's a satisfying feeling to give back to them,” said Jeff Rogoff, owner of Sazza Restaurant and a Colorado SecureSavings participant. “When I was 20 years old, I didn’t imagine that a program like this would be possible. I am very proud to be able to help my team save for their retirement.”
Colorado SecureSavings accounts leverage the benefits of compound interest, allowing retirement funds to grow faster over time. Since the program launched two years ago, plan participants hold $81 million in savings across 62,000 accounts with an average balance of $1,300.
The Department urges business owners to take action now to avoid potential financial penalties in 2025. Employers may enroll in Colorado SecureSavings through the registration page or certify their exemption using their unique access code at ColoradoSecureSavings.com/exempt.
For more information, visit the Colorado SecureSavings website.
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About the Colorado Department of the Treasury
The Colorado Department of the Treasury is the constitutional guardian of the public’s funds. It is the Treasury’s duty to manage and account for the taxpayers’ dollars from the time they are received until the time they are disbursed. The Treasury’s staff is committed to safeguarding and managing the people’s monies with the same diligence and care as they do their own. For more information, visit the Treasury website.