Colorado § 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;

(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.

Source: L. 2019: Entire article added, (SB 19-173), ch. 236, p. 2343, § 2, effective May 20. L. 2020: (1), IP(2), (2)(c), (2)(e), (2)(h), (2)(k), and (2)(l) amended, (2)(f), (2)(j), (3) to (5) repealed, and (6) added, (SB 20-200), ch. 295, pp. 1462, 1467, §§ 6, 8, effective July 14.

Cross references: For the legislative declaration in SB 20-200, see section 1 of chapter 295, Session Laws of Colorado 2020.