401(k)/457 Plans (PERAPlus) for Employers
Two key provisions of the SECURE 2.0 Act impacting PERA-covered employers become effective in 2025 and 2026. Learn more: SECURE 2.0 Act Resources for Employers.
The PERAPlus 401(k) and 457 Plans allow employees to save for retirement beyond their Colorado PERA benefit. All PERA employers offer the PERAPlus 401(k) Plan, but you can choose to also offer the PERAPlus 457 Plan and a Roth option.
There is no cost to the employer associated with affiliating with the PERAPlus 457 Plan or adopting the Roth option other than the cost to prepare and submit contribution reports to Empower, the recordkeeper for the PERAPlus Plans.
PERAPlus 457 Plan
The PERAPlus 457 Plan is an optional deferred compensation retirement savings plan under Section 457(b) of the Internal Revenue Code (IRC). You may affiliate at any time, and there is no minimum participation level.
457 Adoption Communication Kit
This kit offers a variety of sample content for you to use when communicating with your employees about your new 457 option. Each of the PDFs allow copy and pasting, with formatting, so that you can customize items to fit your needs.
Roth Option
The PERAPlus 401(k) and 457 Plans offer a Roth option. Unlike traditional PERAPlus 401(k)/457 pre-tax contributions, Roth contributions are taxed before the money is contributed to the Plan. Any earnings on Roth contributions grow tax-free and distributions will also be free of federal (and where applicable, state and local) income taxes, provided they are qualified distributions. You may adopt the Roth option at any time, and there is no minimum participation level.
The Roth option may require additional work if your payroll system is not already programmed to account for Roth contributions.
Roth Adoption Communication Kit
This kit offers a variety of sample content for you to use when communicating with your employees about your new Roth option. Each of the PDFs allow copy and pasting, with formatting, so that you can customize items to fit your needs. Each file offers sample content for employers that offer only 401(k) Plans and those that offer both 401(k) and 457 Plans.
457/Roth Combination Communication Kit
This kit offers a variety of sample content for you to use when communicating with your employees about your new 457 and Roth option. Each of the PDFs allow copy and pasting, with formatting, so that you can customize items to fit your needs
Welcome Letter – Best Practices
PERAPlus 457 and Roth Option Adoption Talking Points
PERAPlus 457 and Roth Option Adoption Email from Employers
PERAPlus 457 and Roth Option Adoption HR Newsletter Content
PERAPlus 457 and Roth Option Adoption Letter to Employees from PERA
PERAPlus 457 and Roth Option Adoption Email Invitation to Educational Webinars
Get Started
Contact the PERA Defined Contribution Team for more information or to affiliate with the PERAPlus 457 Plan or to adopt the Roth option.