Colorado State Treasurer Dispenses Inaccurate Colorado SecureSavings (CSS) Program Details and Incompetent Financial Advice on Live TV
State Mandates Regulatory Updates
- Colorado State's Treasurer Dave Young, is a retired middle school teacher, IT professor, and previous state legislator- he has no formal financial education, nor financial credentialing; he is barred by the SEC and FINRA from dispensing financial advice of any kind.
- The State Treasurer does not have the ability to alter, amend or nullify any existing legislation- including the inability to postpone or cancel noncompliance and penalty fees in regards to the Colorado SecureSavings program.
- Colorado SecureSavings noncompliance fees will begin in 2024, up to $5,000/ year for every business that does not have a qualified workplace retirement plan in place.
Where to even start with this one?
Once again, the government officials in charge of the outreach and implementation efforts of a state Auto-IRA program are unsuccessfully communicating, and woefully dispensing ill-suited financial advice.
CBS News Colorado, we (somewhat) appreciate the platform you gave the Colorado Department of the Treasury, but that said, we have a few reputable and credentialed edits:
1. Employers that already have a qualified workplace retirement plan in place are exempt, not excluded, from the program. This difference should be noted because the Colorado SecureSavings Program is not a viable solution for most employers. An individual that makes over $146,000/ year, or are married and make $230,000/ year, are EXCLUDED from participating.
2. Looking at the most recent data coming out of Georgetown University Center for Retirement Initiatives, CSS is reporting a mere 39.8% action rate and an above average 63.5% Opt-Out rate. Their metrics of success are also only being measured in how many employers sign up for the program... not how many people are actively contributing.
3. It is irresponsible and amateurish for the State Treasurer to get on a widely distributed news program, only to propagate that the state will not be imposing its penalty fees.
The state has a legislated obligation to hold companies that are noncompliant with the retirement plan mandate, liable with noncompliance fees. The Treasurer does not have the power to alter the law individually.
4. The comment that just by keeping your money in the account it will, "balloon" is also the mark of an incompetent source; someone who in all honesty, is prohibited by the U.S. Securities and Exchange Commission and FINRA from dispensing financial advice. Just like a 401(k), an IRA is just a type of account, the investment options offered within the plan are what make or break your asset growth.
The state is currently offering retail fund classes, with the biggest excessive fee collectors in the industry. Not only are you able to save less with an IRA, you are individually being charged more in the retail fund classes. Whereby you are investing in inferior funds, with inferior performance, that are more expensive, and divvied out from unsophisticated "officials" who don't have the proper credentials nor knowledge to be handling your money.
5. Blatant incompetence does not meet the fiduciary standards of conduct, Dave Young. Because no, establishing a retirement plan does not and is not supposed to involve "a lot of lawyers", nor is it "too expensive" as its cost is a tax credit for the first 3 years.
Misrepresenting a nonsensical "solution", to give off the connotation the government is "solving" the retirement crisis, does nothing to actually move the needle in the right direction. It is just a self-serving mechanism to feed one public official's ego. Respectfully, get your facts straight before you go to the press.
Every TABOR Believing Coloradan
Watch the full segment on CBS News: https://www.cbsnews.com/colora...