NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 10-035
      
      
      BY SENATOR(S) Newell, Foster, Johnston;
      also REPRESENTATIVE(S) Bradford, Liston, Schafer S., Tyler.
      
      
      Concerning automatic enrollment in employee retirement plans.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  8-4-105 (1) (d), Colorado Revised Statutes, is
      amended, and the said 8-4-105 (1) is further amended BY THE ADDITION
      OF A NEW PARAGRAPH, to read:
      
           8-4-105.  Payroll deductions permitted.  (1)  No employer shall
      make a deduction from the wages or compensation of an employee except
      as follows:
      
           (a.5)  Deductions for contributions attributable to
      automatic enrollment in an employee retirement plan, as defined
      in section 8-4-105.5, regardless of whether the plan is subject to
      the federal "Employee Retirement Income Security Act of 1974",
      as amended;
      
           (d)  Any deduction, not listed in paragraph (a) paragraph (a), (a.5),
      (b), or (c) of this subsection (1), which that is authorized by an employee
      if such the authorization is revocable, including but not limited to
      deductions for hospitalization and medical insurance, other insurance,
      savings plans, stock purchases, voluntary pension supplemental
      retirement plans, charities, and deposits to financial institutions;
      
           SECTION 2.  Article 4 of title 8, Colorado Revised Statutes, is
      amended BY THE ADDITION OF A NEW SECTION to read:
      
           8-4-105.5.  Automatic enrollment in retirement plans - relief
      from liability - conditions - definitions.  (1) (a) (I)  An employer that
      provides automatic enrollment in an employee retirement plan is
      not liable for the investment decisions made by the employer on
      behalf of any participating employee with respect to the default
      investment of contributions made for that employee to the plan
      if:
      
           (A)  The plan provides the participating employee at least
      quarterly opportunities to select investments for the employee's
      contributions among investment alternatives available under the
      plan;
      
           (B)  The participating employee is given notice of the
      investment decisions that will be made in the absence of direction
      from the employee, a description of all the investment
      alternatives available for employee investment direction under
      the plan, and a brief description of procedures available for the
      employee to change investments; and
      
           (C)  The employee is given at least annual notice of the
      actual default investments made of contributions attributable
      to the employee.
      
           (II)  The relief from liability of the employer under this
      subsection (1) extends to any employee retirement plan official
      who makes the actual default investment decisions on behalf of
      participating employees.
      
           (b)  Nothing in this subsection (1) modifies any existing
      responsibility of employers or other plan officials for the
      selection of investment funds for participating employees.
      
           (2)  As used in this section:
      
           (a)  "Automatic enrollment" means an employee retirement
      plan provision under which an employee will have a specified
      contribution made to the plan, equal to a compensation reduction,
      that will be made for the employee unless the employee
      affirmatively elects, in accordance with the federal "Pension
      Protection Act of 2006", Pub.L. 109-280, either not to have any
      compensation reduction contributions or a compensation
      reduction contribution in an alternative amount.
      
           (b)  "Employee retirement plan" means a plan described in
      sections 401(k) or 403(b) of the federal "Internal Revenue Code of
      1986", as amended; a governmental deferred compensation plan
      described in section 457 of the federal "Internal Revenue Code of
      1986", as amended; or a payroll deduction individual retirement
      account plan described in sections 408 or 408A of the federal
      "Internal Revenue Code of 1986", as amended.
      
           SECTION 3.  Act subject to petition - specified effective date. 
      This act shall take effect January 1, 2011; except that, if a referendum
      petition is filed pursuant to section 1 (3) of article V of the state constitution
      against this act or an item, section, or part of this act within the ninety-day
      period after final adjournment of the general assembly, then the act, item,
      section, or part shall not take effect unless approved by the people at the
      general election to be held in November 2010 and shall take effect on
      January 1, 2011, or on the date of the official declaration of the vote thereon
      by the governor, whichever is later.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                Terrance D. Carroll
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Karen Goldman                          Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO