C.R.S. § 24-54.3-101 Short title
24-54.3-101. Short title. The short title of this article 54.3 is the "Colorado Secure Savings Program Act".
Colorado Secure Savings Program Act
C.R.S. tit. 24, art. 54.3
in effectC.R.S. § 24-54.3-102 Definitions
24-54.3-102. Definitions. As used in this article 54.3, unless the context otherwise requires:
(1) "Board" means the Colorado secure savings program board established in section 24-54.3-103.
(2) "Employee" means any individual who is eighteen years of age or older, who is employed by an employer for at least one hundred eighty days, and who earns wages subject to income tax pursuant to section 39-22-104.
(3) "Employer" means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not-for-profit, that employed five or more employees at any time during the previous calendar year, has been in business at least two years, and has not offered a qualified retirement plan to any employees, including, but not limited to, a plan qualified under sections 401 (a), 401 (k), 403 (a), 403 (b), 408 (k), 408 (p), or 457 (b) of the internal revenue code in the preceding two years.
(4) "Fee" means investment management charges, administrative charges, investment advice charges, trading fees, marketing and sales fees, revenue sharing, broker fees, and other costs necessary to run the Colorado secure savings program.
(5) "Internal revenue code" means the federal "Internal Revenue Code of 1986", as amended, or any successor law.
(6) "IRA" means a Roth individual retirement account authorized pursuant to section 408A of the internal revenue code or a traditional individual retirement account.
(6.5) "Program" means the Colorado secure savings program created by the board pursuant to section 24-54.3-103 (1).
(7) "Wages" means any compensation within the meaning of section 219 (f)(1) of the internal revenue code that is received by an employee from an employer during the calendar year.
C.R.S. § 24-54.3-103 Colorado secure savings program board - creation - composition
24-54.3-103. Colorado secure savings program board - creation - composition. (1) There is hereby created in the office of the state treasurer the Colorado secure savings program board to create and implement the Colorado secure savings program.
(2) The board consists of the following nine members:
(a) The state treasurer or the treasurer's designee; and
(b) Eight members appointed by the governor as follows:
(I) Five public representatives with expertise in investment or retirement savings plan administration, including the day-to-day operations of plans, maintaining individual accounts, investing assets in a retirement savings plan, and individual financial planning, at least one of whom shall be a representative of a federally chartered bank and at least one of whom shall be a representative of a state chartered bank;
(II) A representative of employers;
(III) A representative of employees; and
(IV) A retired Colorado resident.
(3) In making appointments to the board, the governor shall make a concerted effort to include members of diverse political, racial, cultural, income, and ability groups and members from urban and rural areas of the state. The governor shall appoint board members as soon as practicable.
(4) The state treasurer or the treasurer's designee shall serve as the chair of the board. The members shall elect from among themselves any other officers as may be necessary for the board to carry out its duties and responsibilities.
(5) A vacancy in the term of an appointed board member shall be filled for the balance of the unexpired term in the same manner as the original appointment.
(6) Members of the board shall serve without compensation but may be reimbursed for actual and necessary expenses incurred in connection with their board duties.
(7) The term of any member appointed by the board prior to September 15, 2020, shall expire on September 14, 2020. The governor shall make new appointments to the board for terms beginning September 15, 2020, and any member appointed to the board for a term beginning on or after September 15, 2020, shall serve a four-year term; except that members of the board appointed by the governor serve at the pleasure of the governor. A member is eligible for reappointment for an additional two terms.
(8) An individual shall not be or continue to be a member of the board if that individual has been adjudicated of violating any provisions of this article 54.3 or has been convicted of a felony or crime involving the misappropriation of funds.
(9) The members of the board, any other agents appointed or engaged by the board, and all persons serving as staff, shall discharge their duties with respect to the analyses solely in the interest of the state and shall not engage in any activities that might result in a conflict of interest with their duties as members of the board.
C.R.S. § 24-54.3-103.5 Colorado secure savings program board - powers - duties
24-54.3-103.5. Colorado secure savings program board - powers - duties. (1) The board shall have the following powers and duties:
(a) To establish, implement, and maintain the program developed pursuant to section 24-54.3-104;
(b) To adopt rules for the general administration of the program;
(c) To direct the state treasurer to hire staff to support the oversight and administration of the program;
(d) To develop an investment policy statement and oversee the investment of the funds contributed to accounts in the program consistent with the investment restrictions established by the board. The investment restrictions shall be consistent with the objectives of the program, and the board shall exercise the judgment and care then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs with due regard to the probable income and level of risk from certain types of investments of money, in accordance with the policies established by the board.
(e) To collect application, account, or administrative fees to defray the costs of administering the program;
(f) To create a grant program to incentivize compliance with the program and defray the costs of small businesses with five to twenty-five employees;
(g) To seek and accept gifts, grants, and donations to be used for the grant program and for the purposes of this article 54.3, unless such gifts, grants, or donations would result in a conflict of interest relating to the solicitation of vendors for program administration;
(h) To make and enter into contracts, agreements, or arrangements, and to retain, employ, and contract for any of the following services considered necessary or desirable, for carrying out the purposes set forth in this article 54.3:
(I) Services of private and public financial institutions, depositories, consultants, investment advisers, investment administrators, and third-party program administrators;
(II) Research, technical, and other services; and
(III) Services of other state agencies to assist the board in its duties;
(i) To set penalties for employers that do not comply with the requirements of the program and work with the department of labor and employment to enforce compliance with the program;
(j) To evaluate the need and procedures, if necessary, for the program, program administration, and board members to have private insurance;
(k) To develop and implement an outreach plan to gain input and disseminate information regarding the program and retirement savings in general;
(l) To assess the feasibility of multi-state or regional agreements to administer the program through shared administrative resources and enter into those agreements if determined beneficial; and
(m) To include financial education as a part of the secure savings program implementation to the extent feasible given available resources.
(2) The board may enter into intergovernmental agreements with the secretary of state, the department of revenue, the department of labor and employment, and any other agency that the board deems appropriate to provide outreach, technical assistance, or compliance services for the purposes of this article 54.3. Any agency that enters into an intergovernmental agreement with the board pursuant to this section shall collaborate with the board to provide the outreach, technical assistance, or compliance services to the board.
C.R.S. § 24-54.3-104 Colorado secure savings program - development
24-54.3-104. Colorado secure savings program - development. (1) (a) The board shall develop an automatic enrollment payroll deduction IRA, to be known as the Colorado secure savings program. The program will not be a defined benefit plan and the board shall adhere to the criteria specified in subsections (1)(b) to (1)(g) of this section in developing the program.
(b) The state does not have a duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the Colorado secure savings program. Any financial liability for the payment of retirement savings benefits in excess of money available under the program is borne solely by the entities to whom the board contracts to provide insurance to protect the value of the program.
(c) No state board, commission, agency, or any officer or employee thereof is liable for any loss or deficiency resulting from particular investments selected under this article 54.3.
(d) Participating employers do not have any liability for an employee's decision to participate in, or opt out of, the Colorado secure savings program or for the investment decisions of the board or of any enrollee.
(e) A participating employer is not a fiduciary, or considered to be a fiduciary, over the Colorado secure savings program. A participating employer does not bear responsibility for the administration, investment, or investment performance of the program. Employers are not liable for any errors or omissions on disclosure forms, the website, or information provided by the state. A participating employer is not liable with regard to investment returns, program design, and benefits paid to program enrollees.
(f) Money deposited by enrollees in the Colorado secure savings program is not property of the state, and the plan is not a department, institution, or agency of the state. Amounts on deposit in the program shall not be commingled with state money and the state shall not have a claim to or against, or interest in, such money.
(g) The board is responsible for designing and disseminating to all employers an employer implementation packet and an employee information packet, which includes background information on the Colorado secure savings program and appropriate disclosures for employees. The employee information packet shall also include information on the mechanics of making contributions to the program and how to opt out of the program.
(2) The board shall design the Colorado secure savings program to promote greater retirement savings for private sector employees in a convenient, low-cost, and portable manner and the program shall:
(a) Automatically enroll private sector employees who work for employers;
(b) Automatically enroll employees with a contribution level of five percent of their wages. Employees may opt not to participate in the Colorado secure savings plan or may select a different level of contribution.
(c) Pool investment money, invest money in the Colorado secure savings program to achieve cost savings through efficiencies and economies of scale, and make or enter into contracts with up to three investment managers, private financial institutions, and other service providers to invest money and administer the program. If fewer than three entities bid to be investment managers or meet the qualifications to be an investment manager as determined by the board, the program may proceed with fewer than three investment managers.
(d) Provide the following investment options:
(I) A low-risk investment portfolio;
(II) Target date funds; and
(III) Other investment funds as determined by the board;
nister the program. If fewer than three entities bid to be investment managers or meet the qualifications to be an investment manager as determined by the board, the program may proceed with fewer than three investment managers.
(d) Provide the following investment options:
(I) A low-risk investment portfolio;
(II) Target date funds; and
(III) Other investment funds as determined by the board;
(e) Minimize total annual fees associated with the Colorado secure savings program. For the first five years of operation of the program, total annual fees associated with the program shall not exceed one percent of the total value of the program's assets. In the sixth year of the operation of the program and in each year thereafter, the total annual fees associated with the program shall not exceed three-quarters of one percent of the total value of the program's assets.
(f) Repealed.
(g) Ensure the portability of benefits and consider the type of IRA offered as a way of increasing the portability of benefits;
(h) Ensure that employers in all of Colorado's industries are covered by the Colorado secure savings program and that employees in all of Colorado's industries can participate in the program;
(i) Provide for the investment and deaccumulation of enrollee assets in a manner that maximizes financial security in retirement;
(j) Repealed.
(k) Allow employers who are not covered by the Colorado secure savings program to voluntarily participate in the program; and
(l) Allow individuals who are not considered employees under the Colorado secure savings program but who meet the qualifications to open an IRA to voluntarily participate in the program.
(3) to (5) Repealed.
(6) Employers are required to comply with the requirements of the program developed pursuant to this article 54.3.
C.R.S. § 24-54.3-105 Reports to the governor and general assembly
24-54.3-105. Reports to the governor and general assembly. (Repealed)
C.R.S. § 24-54.3-106 Plan implementation authorization
24-54.3-106. Plan implementation authorization. (Repealed)
C.R.S. § 24-54.3-107 Colorado secure savings program - rules
24-54.3-107. Colorado secure savings program - rules. (1) The board shall adopt rules that:
(a) Establish the process for enrollment in the program developed pursuant to section 24-54.3-104, including procedures for automatic enrollment of employees and for employees to opt out of the program;
(b) Establish the process for withdrawal from program accounts, including allowing an employee to withdraw money without penalty from the program for at least the first two years of enrollment within the program;
(c) Establish the process for participants to make the default contribution of five percent to program accounts and to adjust the contribution levels, including mechanisms for automatic adjustments of contribution levels;
(d) Establish the process for employers to withhold employee contributions to program accounts from employees' wages and send the contributions to the program administrator for the program within no more than fourteen days of contribution being withheld from an employee's wages;
(e) Establish the process for participants to make nonpayroll contributions to program accounts;
(f) Set minimum and maximum contribution levels in accordance with limits established by the internal revenue code;
(g) (I) Establish the process and requirements for employer exemption from offering the program if the employer offers a qualified retirement plan, including but not limited to a plan qualified under section 401 (a), section 401 (k), section 403 (a), section 403 (b), section 408 (k), section 408 (p), or section 457 (b) of the internal revenue code;
(II) The process for exemption shall be minimal for employers and the board shall use existing state forms and state compliance structures for exemption reporting;
(III) The process for exemption shall allow employers to become exempt if the employer enters into legally compliant multiple employer plans;
(h) Establish the process and requirements for providing grants to incentivize compliance with the program and defray costs incurred by small businesses with five to twenty-five employees; except that a grant for a single employer shall not exceed three-hundred dollars;
(i) (I) Establish minimal fines for employer noncompliance in an amount up to one hundred dollars for each employee per year who is eligible to participate in the program, not to exceed an aggregate amount of five thousand dollars in a calendar year;
(II) Enforcement of fines shall not commence until at least one year after the program is established or one year after an employer is scheduled to enter the program, whichever is later;
(III) An employer shall not be fined until three months after the employer has received a notice of noncompliance;
(j) Establish the process for enforcing employer compliance with the program, in partnership with the department of labor and employment; and
until at least one year after the program is established or one year after an employer is scheduled to enter the program, whichever is later;
(III) An employer shall not be fined until three months after the employer has received a notice of noncompliance;
(j) Establish the process for enforcing employer compliance with the program, in partnership with the department of labor and employment; and
(k) Mandate the contents and frequency of required disclosures to employees, employers, and other program participants. These disclosures must include, but need not be limited to:
(I) The benefits and risks associated with making contributions to the program;
(II) Instructions for making contributions to the program;
(III) Instructions for opting out of the program;
(IV) Instructions for participating in the program with a level of contributions other than the default rate;
(V) The process for withdrawing retirement savings in accordance with the employee's investment type;
(VI) How to obtain additional information about the program;
(VII) That employees seeking financial advice should work with the program administrator or contact financial advisers, that participating employers are not in a position to provide financial advice, and that participating employers are not liable for decisions employees make in connection with their participation in the program;
(VIII) That the program is not an employer-sponsored retirement plan;
(IX) That the program accounts and rate of return are not guaranteed by the state; and
(X) The possible tax implications and restrictions of individual retirement accounts.
C.R.S. § 24-54.3-108 Colorado secure savings program fund - creation
24-54.3-108. Colorado secure savings program fund - creation. (1) The Colorado secure savings fund, referred to in this section as the "fund", is hereby created in the state treasury. The fund consists of the following:
(a) Money appropriated to the fund by the general assembly;
(b) Money transferred to the fund from the federal government, other state agencies, or local governments;
(c) Money from the payment of fees, penalties, and the payment of other money due to the board; and
(d) Any gifts, grants, or donations made to the board, and any gifts, grants, donations, or investments received by the state treasurer.
(2) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(3) Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year shall remain in the fund.
(4) Money in the fund is continuously appropriated to the board for the purposes of implementing and administering this article 54.3.
C.R.S. § 24-54.3-109 Implementation and administration - costs
24-54.3-109. Implementation and administration - costs. The state treasurer may seek, accept, and expend gifts, grants, donations, or investments not required to be repaid, from private or public sources for the costs associated with the administration of this article 54.3.
C.R.S. § 24-54.3-110 Confidentiality
24-54.3-110. Confidentiality. Individual account information for accounts under the program developed pursuant to section 24-54.3-104, including but not limited to names, addresses, telephone numbers, personal identification information, amounts contributed, and earnings on amounts contributed, is confidential and shall be maintained as confidential; except that individual account information may be disclosed to the extent necessary to administer the program developed pursuant to section 24-54.3-104 in a manner consistent with this article 54.3, state tax laws, and the internal revenue code. The provisions of this section do not apply if the person who provides the information or is the subject of the information expressly agrees in writing that the information may be disclosed.
C.R.S. § 24-54.3-111 Annual report
24-54.3-111. Annual report. Notwithstanding the provisions of section 24-1-136 (11), on or before April 1, 2022, and on or before April 1 each year thereafter, the board shall submit a report to the governor and to the members of the finance committees of the senate and the house of representatives, or any successor committees, detailing the board's activities and the status of the program. At a minimum, the report shall include statistics regarding enrollment in the program, the number of program accounts opened, the average amount employees are saving through the program, average contribution levels, a summary of common complaints or concerns about the program, and information regarding the administrative costs and fees associated with the program.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026