Colorado is just another state that is offering a payroll deduction IRA program, forcing businesses to offer this program if they have five or more employees. I’m in favor of anything that offers increased retirement plan coverage.
Over 40% of private employees in Colorado don’t have access to a retirement plan at work, so this is a good thing. While many plan providers don’t want to compete against the government in the retirement plan space, I believe that many Colorado employers would rather join a multiple employer plan, a pooled employer plan, or their own single-employer plan because of the fear of having the state government involved in the retirement plan business. In states like Colorado, I believe this is an opportunity to get employers who would never get a plan, forced to start one because they don’t want to be enrolled in this state program. When it comes to retirement, I believe that many employers just have. The negative view of government and retirement savings, knowing full well the status of Social Security.