ColoradoColorado workplace plans provide payroll options for employee savings
Starting January 1, 2027, Colorado workplace plans must offer payroll savings options, while PERA members may buy eligible credit for past service.
What it does
PERA members may buy credit for eligible past time when they did not earn PERA credit, if they meet service, age, and recordkeeping rules.
The voluntary investment program must let employees save through payroll with tax-deferred or Roth contributions, alongside other retirement plans.
Employees of affiliated employers may use the deferred savings plan, which must offer pre-tax and Roth contribution options.
Argument forEmployees could choose pre-tax or Roth payroll savings through workplace plans, giving them another way to save for retirement.
Argument againstEmployees could have to wait for their employer to join the plan and receive association approval before they can participate.
More detail
PERA members may buy service credit for eligible time when they did not earn PERA credit. Members need at least one year of earned PERA service to buy qualified service. Members who first joined on or after January 1, 1999, need at least five years to buy nonqualified service. Members must provide employment dates and salary records. Members cannot buy credit for time when they were unemployed and under age 21. They may buy credit for work before age 21 if they provide those records. A purchase cannot give a member retirement benefits for the same service under more than one plan, except as federal law requires. The purchase cost is set to cover the retirement cost of the added credit. A member must meet the service requirement when making the purchase. Members who first joined on or after January 1, 1999, may buy no more than five years of nonqualified service. A separate 10-year limit generally applies to purchases of noncovered time.
The voluntary investment program must offer employees tax-deferred and Roth payroll contributions. The program is for employees of an employer, including PERA members and retirees where applicable. The program is in addition to other state or local retirement and tax-deferred savings plans. Contributions are subject to federal limits. The act is set to take effect January 1, 2027, unless a referendum petition is filed; in that case, the challenged provisions take effect only if voters approve them.
Employees of employers affiliated with the deferred compensation plan may participate, and the plan must offer pre-tax and Roth contributions. Employees may participate whether or not they are PERA members or retirees. An employer applies to the association to affiliate, and the application is subject to approval. Employers affiliated before July 1, 2009, remain affiliated without applying again. Payroll contributions are subject to federal limits. Employees may participate once their employer is affiliated with the plan.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 1Governor Jared Polis SignedBecame Law
- May 19Signed by the Speaker of the HouseMajor
- May 19Signed by the President of the SenateMajor
- May 19Sent to the GovernorTo Governor
- May 4House Considered Senate Amendments - Result was to Concur - Repass
- Vote recorded REPASS. Result: pass.Upper
- Vote recorded CONCUR. Result: pass.Upper
- Vote recorded REPASS. Result: pass.Lower
- Vote recorded CONCUR. Result: pass.Lower
- Apr 24House Considered Senate Amendments - Result was to Laid Over Daily
- Apr 23Senate Third Reading Passed - No AmendmentsPassed Senate
- Vote recorded BILL. Result: pass.Upper
- Apr 22Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the WholeMinor
- Vote recorded Refer House Bill 26-1026 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. Result: pass.Upper
- Apr 22Senate Second Reading Special Order - Passed with Amendments - Committee
- Mar 24Senate Committee on Finance Refer Amended to AppropriationsMinor
- Vote recorded Adopt amendment L.003 (Attachment B). Result: pass.Upper
- Vote recorded Refer House Bill 26-1026, as amended, to the Committee on Appropriations. Result: pass.Upper
- Mar 10Introduced In Senate - Assigned to FinanceMinor
- Mar 5House Third Reading Passed - No AmendmentsPassed House
- Vote recorded BILL. Result: pass.Lower
- Mar 4House Third Reading Laid Over Daily - No Amendments
- Mar 3House Second Reading Special Order - Passed - No Amendments
- Feb 27House Committee on Appropriations Refer Unamended to House Committee of the WholeMinor
- Vote recorded Refer House Bill 26-1026 to the Committee of the Whole. Result: pass.Lower
- Feb 9House Committee on Finance Refer Unamended to AppropriationsMinor
- Vote recorded Refer House Bill 26-1026 to the Committee on Appropriations. Result: pass.Lower
- Jan 14Introduced In House - Assigned to FinanceIntroduced
Economy & JobsTaxes & Budget