Lessons From The Rocky Mountain West: A New Colorado Program Can Help Small Businesses And Workers Lessen The Wealth Gap
Rhett Buttle • August 17, 2020
Getty
A new law
in Colorado will provide an automatic retirement savings program to small businesses across the state, giving more retirement security to nearly a million workers. In a time when Covid-19 and systematic racism have highlighted disparities in wealth and financial stability, this could be something for business leaders, policymakers and advocates to watch.
Small businesses have a proven track record of bringing jobs and wealth to all communities—especially ones of color. Putting a program in place that helps small business owners and workers plan for retirement is the sort of innovation we need from the government right now. Intrigued? Here is some background and how it works.
In essence, businesses with five or more workers who do not have retirement savings programs will offer access to automatic payroll deductions in an Individual Retirement Account (IRA), which is a public-private partnership
administered by the state and managed by the private sector. This program is a portable benefit, allowing workers to take their accounts with them when they leave a job or roll them into an employer-sponsored account.
Gov. Jared Polis and the Colorado General Assembly have built upon the work of states like Oregon, California, Illinois and New Mexico, and this program could very well be a model for more states to follow. Retirement security is the foundation of financial security but it is an enormous challenge for working families in our country. Many people work for small businesses that aren’t able to offer the retirement options that large companies can. Retirement programs like Colorado’s can put many workers on a path to saving earlier in life, while bolstering small businesses and creating a more financially resilient workforce.
According to a recent Pew study, many small businesses, especially those with 10 or fewer employees, are unable to afford the costs and administrative burdens that come with private retirement security plans. State-facilitated programs enable businesses to offer access to them for free with simplified administrative operations for already overtaxed small business owners. They also help small businesses recruit and retain top quality talent that may leave due to the lack of retirement benefits, thus helping level the playing field between large and small employers.
The bottom line is that these retirement savings programs are showing positive returns. In Oregon, California and Illinois, they have enrolled over 150,000 employees who have accumulated more than $90 million dollars in collective assets. Another Pew study
found that 79% of business owners in Oregon’s program said they did not experience any related out-of-pocket costs.
In the end, all boats can rise from public-private retirement programs. More Americans putting money away for retirement increases their financial resilience and is vital in creating a more equitable workforce. It’s time for states to give all employees the assistance in putting money away for retirement that so many of us take for granted.
This piece originally appeared in Forbes on August 17, 2020. You can view it online here.
Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes.
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Rhett Buttle, Founder and CEO of Public Private Strategies, joined Forbes Breaking News to discuss the impacts that President Trump's tariff policies will have on small businesses. Watch the full interview here or below.
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WASHINGTON, D.C. – This month marks the anniversary of two pivotal pieces of legislation that are helping fuel a small business boom, the CHIPS & Science Act and the Inflation Reduction Act. Over the past four years, there has been a historic growth of American entrepreneurship across the country, with over 18 million new business applications filed, each one an act of hope and optimism in our economic future. This small business boom is fueled by investments like the Inflation Reduction Act and the CHIPS & Science Act. Rhett Buttle, Founder and CEO of Public Private Strategies, released the following statement: “As we mark the two-year anniversaries of the CHIPS & Science Act and the Inflation Reduction Act, the positive impact across the business landscape, and particularly for entrepreneurs, is unmistakable. The CHIPS & Science Act is fueling entrepreneurship opportunities by dedicating over $50 million to help develop new ideas and technologies to strengthen domestic semiconductor production and supply chain. “The Inflation Reduction Act has helped lower costs for workers and consumers, driving up demand for small businesses across the country. The healthcare provisions of the Inflation Reduction Act alone are saving millions Americans an average of $800 per year on health insurance premiums. These investments have helped fuel America’s small business boom, including a record 18 million new small business applications filed over the past four years. “We have more work to do to address the issues that business owners have consistently said are their top priorities, from lowering health care and prescription drug costs to expanding and streamlining contracting opportunities for small employers to strengthening and protecting American democracy . We remained committed to working with business leaders to address these challenges and ensure these investments are implemented effectively to grow economies and support communities all across the country.” ### About Rhett Buttle Founder & CEO, Public Private Strategies President, Public Private Strategies Institute Senior Fellow, The Aspen Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. He has worked for President Biden, Vice President Harris, President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger in government and campaign roles. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policy makers, foundations, nonprofits, and corporations. In addition to PPS and PPSI, he has helped found the Small Business Roundtable, Small Business for America’s Future, and the Next Gen Chamber of Commerce. He is also a Senior Fellow at the Aspen Institute and a regular contributor to Forbes, where he writes on the intersection of business, policy, and politics. Rhett has also been featured in The New York Times, CNN, The Wall Street Journal, and several other business publications. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com .
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WASHINGTON, D.C. – This month marks the anniversary of two pivotal pieces of legislation that are helping fuel a small business boom, the CHIPS & Science Act and the Inflation Reduction Act. Over the past four years, there has been a historic growth of American entrepreneurship across the country, with over 18 million new business applications filed, each one an act of hope and optimism in our economic future. This small business boom is fueled by investments like the Inflation Reduction Act and the CHIPS & Science Act. Rhett Buttle, Founder and CEO of Public Private Strategies, released the following statement: “As we mark the two-year anniversaries of the CHIPS & Science Act and the Inflation Reduction Act, the positive impact across the business landscape, and particularly for entrepreneurs, is unmistakable. The CHIPS & Science Act is fueling entrepreneurship opportunities by dedicating over $50 million to help develop new ideas and technologies to strengthen domestic semiconductor production and supply chain. “The Inflation Reduction Act has helped lower costs for workers and consumers, driving up demand for small businesses across the country. The healthcare provisions of the Inflation Reduction Act alone are saving millions Americans an average of $800 per year on health insurance premiums. These investments have helped fuel America’s small business boom, including a record 18 million new small business applications filed over the past four years. “We have more work to do to address the issues that business owners have consistently said are their top priorities, from lowering health care and prescription drug costs to expanding and streamlining contracting opportunities for small employers to strengthening and protecting American democracy . We remained committed to working with business leaders to address these challenges and ensure these investments are implemented effectively to grow economies and support communities all across the country.” ### About Rhett Buttle Founder & CEO, Public Private Strategies President, Public Private Strategies Institute Senior Fellow, The Aspen Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. He has worked for President Biden, Vice President Harris, President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger in government and campaign roles. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policy makers, foundations, nonprofits, and corporations. In addition to PPS and PPSI, he has helped found the Small Business Roundtable, Small Business for America’s Future, and the Next Gen Chamber of Commerce. He is also a Senior Fellow at the Aspen Institute and a regular contributor to Forbes, where he writes on the intersection of business, policy, and politics. Rhett has also been featured in The New York Times, CNN, The Wall Street Journal, and several other business publications. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com .
