A bill to create a savings program has been introduced in the state Senate Finance Committee. It would enroll private-sector workers who don’t have employer-offered retirement plans into a new one administered by the private sector.
The thinking here, which has been endorsed by economists and psychologists for some time now, just as Colorado Democrats have tried to run a similar bill before, is that people are more likely to do something in their own interests such as saving if they have to opt out rather than in. Workers at businesses with fewer than five employees and the self-employed would not be automatically enrolled but could opt to join.
State Treasurer Dave Young, who is recommending it, said persuading more people to invest for retirement would save the state hundreds of millions of dollars it now spends on safety-net programs for the elderly. Young also said there would be no financial burden on employers, though there would be an administrative burden, the Denver Post reported Monday.
We are glad to see Young taking this initiative. It is a good idea in broad strokes. We would just remind him and the Legislature that for most businesses, an administrative burden is a financial burden. Figure out how to remove that and we might be sold.