Currently, there are 14 states with retirement plan mandates to help individuals save for retirement. In this article, explore program mandates, structure, and roll-out plans for each of the 14 states to understand how (and if) this applies to you and your small business.
Mandate: Companies with 5+ employees must offer a plan or face a fine of $250 per eligible employee after 90 days of noncompliance and an additional fee of $500 per eligible employee after 180 days of noncompliance.
Timing: As of September 30, 2020, anyone with 100+ employees must have complied; as of June 30, 2021, those with 50+ employees must have complied, and by June 30, 2022, those with 5+ employees must comply.
Name: Colorado Secure Savings Programs
Mandate: Companies that have been in business for 2+ years with 5+ employees must offer a plan or face a fine up to $100 per eligible employee per year (up to max of $5,000 annually).
Timing: The pilot program begins in October 2022, enrollment begins in 2023.
Mandate: Companies with 5+ employees paid more than $5K each in the calendar year (unless the business already offers a qualified, employer-sponsored retirement plan). Non-compliance may result in an investigation and penalties.
Timing: Pilot launched in November 2021, with full launch slated for early 2022.
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