DENVER, CO – The House today passed Speaker KC Becker and Representative Tracy Kraft-Tharp’s bill to tackle Colorado’s growing retirement savings crisis. The bill would make it easier for hardworking Coloradans to invest in their futures and take their retirement savings with them when they change jobs, or if they work multiple jobs. The bill passed by a vote of 41-24.
“This bill will give small businesses the option of providing a retirement savings program to their employees without breaking the bank,” said Rep. Kraft Tharp, D-Arvada. “I’m proud of the work we did to come up with a modern, pro-worker, pro-business solution to the retirement crisis facing our state.”
“Our country is barreling towards a retirement crisis, and it’s up to us to ensure hardworking Coloradans have the tools they need to save for their future,” said Speaker Becker, D-Boulder. “The Secure Savings program will benefit our state’s small businesses and hardworking Coloradans alike. Today we voted to create a modern, flexible retirement savings system to reflect Colorado’s 21st century economy.”
Currently, nearly half of Coloradans in the private sector aged 25 to 64 don’t have retirement plans at work. SB20-200 would create a state-facilitated retirement savings program to be managed by private firms chosen through a competitive solicitation process. This program would give workers the ability to invest through pooled, professionally managed accounts with low fees to save a portion of their wages through automatic payroll deductions. There is also an opt-out provision for workers who already have a retirement plan of their own or who are not in a position to deduct a portion of their wages.
This system would give small businesses the opportunity to provide their employees access to a retirement savings program at a low cost to the business. It would also allow hardworking Coloradans to move from job to job or work multiple jobs and contribute to the same account.