Statutes, codes, and regulations
Colorado Administrative Code
Department 1508 - Department of TreasuryDivision 1508 - State Treasurer
Rule 8 CCR 1508-3 - RULES GOVERNING THE COLORADO SECURE SAVINGS PROGRAM
Section 8 CCR 1508-3.8 - Accounts

8 Colo. Code Regs. § 1508-3.8

Download
PDF
Current through Register Vol. 47, No. 22, November 25, 2024
Section 8 CCR 1508-3.8 - Accounts
1508-3.8.1Contributions
A. Minimum and Maximum Contribution Levels
1. It shall be the responsibility of the Account Holder or Voluntary Participant to determine whether he/she/they are eligible per the Code to make Contributions to an Account and whether the amount of their Contributions to an Account complies with the contribution limits established under the Code, and whether or not such Contributions are deductible.
B. Default Investment and Custom Investment options
1. The Program Information provided by Program Administrator shall instruct Account Holders on how to select Custom Investments versus the Default Investment Option.
2. In the Employee portal on the Program website, Account Holders may direct their Contributions to any of the available fund options offered by the Program.
3. During the Hold and Sweep Period, Contributions will be directed into the Capital Preservation Investment.
4. After the Hold and Sweep Period, Program Administrator shall direct Contributions from the Capital Preservation Investment into the Default Investment Option, unless an Account Holder has elected a Custom Investment.
5. Account Holders may change their investment choice at any time after Employer completes Onboarding.
C. Default Contribution Rate and Custom Contribution Rate
1. The Program Information provided by Program Administrator shall instruct Account Holders on how to elect a Custom Contribution Rate distinct from the Default Contribution Rate.
2. In the Employee portal on the Program website, Account Holders may elect any Contribution Rate that is a whole-number percentage and may direct their Contributions to any of the available fund options offered by the Program.
3. During Hold and Sweep Period, Participating Employers will remit the Default Contribution Rate on behalf of Account Holder into the Capital Preservation Investment, unless the Account Holder elected a Custom Contribution Rate during the Opt Out Period.
4. Account Holder Contributions made subsequent to the Hold and Sweep Period will be made at the Default Contribution Rate unless a participant has elected a Custom Contribution Rate.
5. Account Holders may change their Contribution Rate to any whole integer percentage at any time after Employer completes Onboarding of Employees.
1508-3.8.2Non-Payroll Contributions
A. Any Account Holder may choose to make Non-Payroll Contributions to the Program.
B. Such Contributions must not exceed, in combination with Payroll Deduction Contributions, the annual IRA contribution limit as determined by the Code and related rules promulgated by the IRS.
C. The Program Administrator will establish the minimum contribution for Non-Payroll Contributions and the Program website will be current with this information.
D. Non-Payroll Contributions may be made electronically or by personal check.
1508-3.8.3Automatic Escalation
A. Contributions for Account Holders who have Participated in the Program for at least six months will automatically increase by 1% of an Account Holder's Wages at the beginning of each subsequent calendar year, up to a maximum of 8% of an Account Holder's wages.
B. On an annual basis, the Program Administrator shall notify all Account Holders in advance of any Contribution increase to allow for Account Holders to opt out of Automatic Escalation or to change their Contribution Rate.
C. Account Holders may adjust the rate of their Automatic Escalation, or opt in to Automatic Escalation, or opt out of Automatic Escalation at any time through the Program website.
1508-3.8.4Termination of Participating Employer Status through Program Exemption
A. Participating Employers who begin offering a Tax Qualified Retirement Plan must notify the Program Administrator at least sixty days prior to the cessation of Payroll Deduction Contributions.
B. Upon a Participating Employer becoming Exempt, remittance of Payroll Deduction Contributions on behalf of Account Holders is prohibited.
C. Participating Employers that have become Exempt must notify Account Holders at least thirty days before Payroll Deduction Contributions cease and provide them with information describing how to contact the Program Administrator.
D. Unless Account Holders elect otherwise, Accounts will remain in the Program after the Participating Employer certifies its Exemption.
E. Conversion of status of Account Holders
1. If the Participating Employer became Exempt due to its number of Employees falling below five, the status of the remaining Employees of the now-Exempt Employer automatically convert to Voluntary Participants.
2. Exempt Employers with 2-4 Employees are prohibited from remitting Payroll Deduction Contributions for Voluntary Participants.
1508-3.8.5Portability
A. Rollovers and Transfers
1. Rollover or Transfer In
a. An Account Holder may receive rollovers and transfers from other retirement savings vehicles in accordance with the time limits established under Title 26 of the Code.
2. Rollover or Transfer Out
a. The Program Administrator shall determine the process through which an Account Holder or Beneficiary may roll over or transfer all or a portion of a Program IRA to a different retirement savings vehicle in accordance with the Code.
1508-3.8.6Withdrawals
A. Account Holder may withdraw all or a portion of funds from their Account at any time by submitting a completed request to the Program Administrator, in a form or format established by the Program and permitted by the IRS.
B. The Program shall not assess any penalty for withdrawals. Withdrawals shall be subject to any applicable State and federal income tax obligations and may be subject to penalties under the Code.
1508-3.8.7Account Closure
A. The Program Administrator and Treasury Staff will agree determine a process for closing Inactive Accounts.
1508-3.8.8Abandoned Accounts
A. An Account shall be presumed abandoned according to the unclaimed property law of the state of the last known address of the Participating Employee or Participating Individual. If the last known address of the Participating Employee or Participating Individual is in Colorado, the provisions of the Uniform Disposition of Unclaimed Property shall apply. If there is no last known address of the Account Holder in the Program records, federal common law shall determine the state with the first priority claim.

8 CCR 1508-3.8