Offering strong, simple, and accessible retirement-saving opportunities is a great way to keep your employees happy. With Colorado’s new SecureSavings, you can do exactly that.
In this article, we will take a deeper look into SecureSavings and what it means for both employers and employees. This new program offers many benefits for everyone involved, so let’s dive right in.
What is Colorado SecureSavings?
Colorado’s SecureSavings is a state-sponsored retirement savings program designed to make it easier for your employees to save for their future. Your employees can now save for retirement in a Roth Individual Retirement Account (IRA) that is portable even if they change or leave their job.
The program offers a simple, accessible, and low-cost way for workers to build their retirement nest egg. It is a win-win situation for both employers and employees.
What Does the Program Mean to Employers?
First and foremost, if you are a Colorado employer that has been in business for at least 2 years, has 5 or more employees, and are not currently offering a qualified retirement plan for your employees, you are now required by law to facilitate Colorado SecureSavings.
For you, the employer, Colorado SecureSavings is easy to set up and requires only light account maintenance. As an employer, understanding the intricacies of this program is essential to harness its full potential for the benefit of your workforce.
To get your business set up with SecureSavings, there are three simple steps:
- Register
- Send Contributions
- Maintenance
The program will take care of the rest at no cost to you.
You will not be responsible for:
- Setting up your employees’ retirement savings accounts – this will happen automatically.
- Answering questions about Colorado SecureSavings and its investment options, or helping employees choose investments.
- Processing distributions from employee investment accounts.
- Managing Colorado SecureSavings investment options and processing employee investment change requests.
- Managing employee investment account changes. Your employees will be responsible for maintaining their account information and settings if enrolled.
If your business already offers a qualified retirement plan, you will certify your exemption from the program using your provided access code.
How Does This Program Benefit Employers?
Colorado’s SecureSavings has many benefits for the employer:
- It is free to facilitate.
- It is easy to set up with no complex administration and minimal ongoing responsibilities.
- It enables you to focus on your business and is designed to easily integrate with your payroll process.
- It offers a valuable benefit to attract and retain employees by giving them a simple and secure way to save through automatic payroll contributions into a Roth IRA.
- You have no fiduciary responsibility, meaning you are not responsible for the investment decisions or outcomes of any employee who participates in the program.
- You are not responsible for matching contributions. It is not permitted by the program.
- You won’t need to send contributions if using Gusto since they have a great connection!
As you can see, SecureSavings is about fostering a positive work environment. As an employer, you are offered streamlined administration with more time to focus on your business, a cost-effective solution for both yourself and your employees, and a means to bolster employee loyalty and retention.
How Does This Program Benefit Employees?
Colorado SecureSavings is tailored to meet the needs of the modern workforce. It includes:
- Automatic Enrollment: Employees are automatically enrolled in SecureSavings, eliminating the hassle of paperwork and ensuring that everyone has the opportunity to save for retirement.
- Portability: The program is designed to be portable, allowing employees to take their retirement savings with them if they change jobs.
- Investment Choices: SecureSavings provides a range of investment options, empowering employees to tailor their retirement savings strategy to their individual preferences and risk tolerance.
How is Colorado SecureSavings Different from an IRA or 401K?
Many retirement plans involve complex administration requirements, fiduciary liability, and high costs, all of which can hinder your ability to offer your employees the retirement savings plan they deserve.
Colorado SecureSavings is different in that it offers some of the best features of popular employer plans and IRAs, but without the burdensome requirements often associated with these retirement plans. This allows employers to focus on facilitating the program – all at no cost to you.
What’s Needed to Register?
To register, you will need the following:
- Your company’s EIN and unique Access Code (which will be sent to you via mail or email).
- Your payroll provider’s name (if you use one) and your company’s payroll schedule(s).
- Your company’s bank information for payments.
- Your latest employee roster and accompanying personal information (employee name, contact info, date of birth, SSN, etc.). If your payroll provider would like to know what is required, or if you’d like to compile your employee information manually in advance, there is a .CSV template provided on the website you can use to ensure you have everything you need.
Visit Colorado SecureSavings’ Website for More Information
SecureSavings aims to improve the way retirement savings are offered and facilitated for the modern workforce in Colorado. Providing a hassle-free and cost-effective way to save for retirement, this initiative is actively contributing to happier, more satisfied employees.
For further information and to explore the program in-depth, visit the Colorado SecureSavings website.