§ 24-54.3-107 — Colorado secure savings program - rules

Colorado § 24-54.3-107

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Colorado Secure Savings Program Act

Text

(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

(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.

Legislative History

Source: L. 2020: Entire section added, (SB 20-200), ch. 295, p. 1464, � 7, effective July 14.