Visit our Retirement Security website www.ColoradoRetirementSecurity.com
Read the bill in its entirety by clicking here.
Status: the Senate killed HB 1377 by 1 vote on May 6th
What the bill does: Coloradans have a history of creating unique solutions to the challenges our state faces. This bill is no different.
The Colorado Retirement Security Task Force bill creates a legislative task force that will make recommendations for increasing the number of Coloradans working in the private sector who have invested for their retirement and are enrolled in a retirement plan.
Why we need this bill: For decades, Americans have built their retirement with traditional pensions, Social Security and personal savings, but now more than half of American workers do not have any type of employer-sponsored retirement plan or personal investment plan.
Consider the facts:
- 64% of Colorado’s workers age 25-34 and 50% of workers age 35-39 lack access to a retirement plan at work.[i]
- 75% Colorado’s lowest paid workers are not offered a retirement plan at work.[ii]
- White households have six times as much saved in retirement accounts as Hispanic and African American households.[iii]
- 78% of workers in small Colorado firms (less than 50 people) lack access to a retirement plan in their workplace.[iv]
- 38 million working-age American households do not have any retirement assets.[v]
- Many of today’s seniors rely on their children or are dependent on social services that are underfunded and place a burden on taxpayers.
- Social Security is virtually the sole source of income for 35% of women age 65 and older living alone.[vi]
Having access to a workplace retirement plan can mean the difference between making ends meet in retirement or living in poverty and depending on public assistance.
How the bill will work:
The bipartisan task force will be comprised of 13 members who will meet beginning in the summer of 2014 through December 2015. They’ll be asked to consider several factors such as barriers people face to investing for retirement and the types plans private sector employers currently offer. The task force will also be asked to analyze how much money Colorado would save on public assistance if more Coloradans have adequately invested for their retirements.
The task force will then submit a report that includes recommendations to encourage more Coloradans to invest for retirement and for establishing secure retirement plan options for employees in the private sector.
[i] Bell Policy Center analysis of U.S. Census Bureau data from the 2011-2013 Current Population Survey Annual Social and Economic Supplement. Micro data extracted from Integrated Public Use Micro data Series, Current Population Survey Version 3.0: (Machine-readable database, University of Minnesota, Minneapolis, http://cps.ipums.org/cps/index.shtml.
[iii] National Institute on Retirement Security, Race and Retirement Insecurity in the United States, Nari Rhee, December 2013, page 10. This is based on the author’s analysis of 2010 Survey of Consumer Finances (SCF) mircodata. The SCF is conducted by the Federal Reserve Boardhttp://www.giaging.org/documents/NIRS_Report_12-10-13.pdf
[iv]Bell Policy Center analysis of 2011-2013 Current Population Survey Annual Social and Economic Supplement.
[v]National Institute on Retirement Security, The Retirement Savings Crisis: Is It Worse Than We Think?, Nari Rhee, June 2013, page 9. This is based on the author’s analysis of 2010 Survey of Consumer Finances (SCF).
[vi]U.S. Social Security Administration, Office of Retirement and Disability Policy, Income of the Population 55 and Older, 2010, table 9.B3http://www.ssa.gov/policy/docs/statcomps/income_pop55/