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Many Colorado employers that do not otherwise sponsor a qualified retirement or savings plan for employees have commenced participation in the new Colorado Secure Savings Program (CSSP), which launched in January 2023. This article outlines some key issues for employers currently participating in CSSP and those that need to register. For a complete overview of the program, please see Employers Council’s whitepaper. 

Participating Employers 

Employers are responsible for keeping employee records up to date. You must notify the CSSP program administrator of new employees no later than 30 days following the new employee’s 180th day of employment. And, importantly, you must check your CSSP portal every pay period for current employee contribution rates and opt-outs before taking deductions from paychecks. Remember, employees can change their elections at any time. Employees who experience significant fluctuation in their take-home pay, such as tipped employees, may make frequent changes to their savings rate.  

If you use a third-party payroll vendor, you have the option to add them as an additional user to your portal so they can perform this process on your behalf each pay period. Agreements with payroll providers should be specific regarding these responsibilities.   

Employers That Need to Register  

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. By now, all such organizations should have received an official registration notice from the state. Many employers have been able to register their exemption from CSSP because they already sponsor a qualified retirement plan for their employees. (Note: Employers that have filed a Form 5500 report with the U.S. Department of Labor may not receive a notice to register as they are assumed to continue to offer a qualified retirement plan.)   

If you do not sponsor a qualified retirement plan and have not begun participation in CSSP, please be aware that your registration is delinquent, and beginning in 2024, you could be subject to enforcement action, including fines of $100 for each employee per year, not to exceed $5,000 in a calendar year.   

As of the end of June 2023, tens of thousands of Colorado employers had failed to register with CSSP. Please note that even if you will be exempt due to sponsoring a qualified retirement plan, you must still register and claim that exemption. And if you will not be exempt, you need to register now so your employees can commence participation.  

Employers Council HR consultants and attorneys are available to Consulting and Enterprise members to navigate the process. If you need assistance or have any questions, please contact our Member Experience Team.