The Obama-era rules allowing for state-backed retirement savings programs will not be going forward in Colorado. According to the Denver Business Journal, state Republicans rejected a bill in committee that would have established a state-run savings program for employees, just days before the US Senate repealed the rule easing the path for these programs nationally.
House Bill 1290 would have mandated participation in a state-run savings program for all businesses that do not offer a similar plan to employees. Employees would have been able to opt-out of the program. Legislators voted along party lines to kill the bill in committee 3-2.
NFIB opposed the implementation of state-sponsored savings plans, arguing that it is another government mandate that could create new fiduciary responsibilities and possible liabilities for small businesses over which they would have little control.
Just a few days later, on May 3, the U.S. Senate rolled back the initial Obama-era ruling which gave a green light to such state-backed plans, citing many of the same concerns as NFIB.
“States … are already using this authority to impose new mandates on both large and small employers, including start-up businesses,” said Sen. Orrin Hatch of Utah, according to The Hill. “Some of the mandates apply regardless of the size of the businesses.”