It has been over a year since the first set of registration deadlines for the Colorado Secure Savings Program (CSSP). As of June 30, 2024, more than 15,300 employers had registered for the retirement savings program, and more than 31,500 employers had registered their exemption from the program, certifying that they offer a retirement plan to their employees. The average CSSP participant account balance is $1,119, and the average participant monthly contribution is $165.
All Colorado private-sector employers, including nonprofit and religious organizations, are subject to CSSP if they have five or more employees and have been in business for two or more years.
State officials are focused on reviewing employer data. The Colorado Treasury Department recently sent out more than 14,000 notices to employers in their annual registration wave. They will also reach out to employers that started the registration process but did not complete it or registered but did not start payroll deductions or have stopped payroll deductions.
The Colorado Department of Labor and Employment (CDLE) is responsible for enforcing the Colorado Secure Savings Act. CDLE can fine non-compliant employers $100 for each employee per year, not to exceed $5,000 in a calendar year. It’s not clear when enforcement will begin — the program’s website says only that it will start “in 2024.” Employers that have not yet signed up for CSSP or applied for an exemption should do so as soon as possible to avoid any penalties. Employers that file Form 5500 reports annually for their retirement plans are typically exempted automatically, with no action required by the employer.
You can register for the program or certify an exemption at coloradosecuresavings.com.
CSSP is administered at no cost to employers (except your payroll processing time), no matching requirements are required or permitted, and is compatible with 28 payroll systems. Employees can opt out of the program, increase or decrease their after-tax savings amount, and choose their investment options within this portable IRA plan. As an alternative, employers have the option of sponsoring their own retirement plans.
To learn more about the program, Employers Council members can review our whitepaper and sample handbook policies. If you have any questions, contact us at info@employerscouncil.org.
Laurie Enke is a human resources consultant for Employers Council.