Update Applicable to:	Effective date
All covered employers with 5 or more employees	See details below

What happened?

Colorado began notifying employers that they must register for Colorado SecureSavings Program (CSSP) in April 2024, and businesses previously notified, they must register if they have not done so.

What are the details?

Quick Bites:

• Mandatory Participation: Under Colorado law, employers are required to offer a retirement savings plan to their employees. This can be through the CSSP or another qualified retirement plan.

• Registration Process: Employers need to register their business using a unique access code provided in the notification. This helps the program keep track of participating employers and ensures compliance.

• Employee Enrollment: Employers must upload payroll and employee information to the system, which is necessary for automatically enrolling employees in the program unless they choose to opt-out.

• Awareness and Support: Notifications help employers understand the program’s benefits, and requirements, and still the minimal administrative effort needed to participate.

General Bites for Employers:

• Covered Employers: all employers in the state that have:
  (1) been in business for at least 2 years.
  (2) have 5 or more employees.
  (3) do not offer a qualified retirement plan for employees must offer CSSP to their employees.

• The CSSP for Employers or Business.

• The CSSP for Employees.

• The CSSP automatically enrolls employees in individual retirement accounts (IRAs) to help them prepare for retirement.

• Employees have the option to opt out of the program even after the initial 30-day window, and their previous deductions can be withdrawn.

Business Considerations

• Employers should Use the unique access code provided in the notification to register their business on the Colorado SecureSavings portal or certify an exception. This is the first step to getting started.
• Employers should ensure all eligible employees are enrolled in the program. Employees will be automatically enrolled unless they choose to opt-out.
• Employers should communicate to their employees that they have been enrolled in the CSSP, so they can exercise their opt-out option.

Source References

• CO SecureSavings Program details for employers
• CO SB 20-200
• Co Department of Treasury – SecureSavings Program

Resources

• CO SecureSavings FAQs for Employers
• New Colorado Laws 101: Colorado SecureSavings Program (Arvada Chamber of Commerce)

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