The Colorado Secure Investment Savings Program (CSSP) is a new retirement investment fund initiative designed to aid Colorado workers in saving for their retirement. The program was established following the passing of the Colorado Secure Savings Act by the state legislature in 2021. For comprehensive details on the CSSP, more details can be found on the Colorado state’s website.
Who Can Participate in the Program?
All companies with 5 or more employees in the State of Colorado who do not have a retirement plan through their workplace are required to participate in the CSSP. Colorado employers can opt-out of the program by providing employees an alternative retirement vehicle such as: 401(k), SIMPLE IRA, etc.
How Does the Program Work?
The CSSP is a payroll deducted savings plan. Employees who take part will have a portion of their pay taken from their paychecks and put into their ROTH retirement accounts (ROTH IRA). Employees will have an automatic 5% contribution upon eligibility. If employees prefer not to participate, they can choose to opt-out of the program.
When Will the Program Start?
The CSSP has begun in 2023 and businesses should either enroll or opt-out as soon as possible. If non-compliant, fines will begin in the beginning of 2024.
What are the Requirements for Colorado Employers?
Colorado employers who do not offer retirement plans are required to enroll their employees.
- The deadline for employers with over 50 employees has passed, so it is important to either opt-out or enroll if you have over 50 employees.
- Businesses with 15-49 employees must opt-out or enroll by May 15, 2023.
- Businesses with 5-14 employees must opt-out or enroll by June 30, 2023.
Business owners will be responsible for facilitating payroll deductions but will not be required to contribute to their employees’ retirement accounts. If Colorado employers already offer a retirement savings program to their employees, they can not offer the CSSP.
Employers are responsible for maintaining current enrollments and contribution changes to the CSSP plan before each payroll.
Employers will also be obligated to timely report and transmit employee contributions after each payroll.
Colorado employers that offer a retirement plan are not required to enroll their workers in the CSSP; however, they must inform them of the program.
How Much Can an Employee Contribute?
The CSSP’s annual contribution limit is $5,500 for workers under the age of 50 and $6,500 for workers over the age of 50. The limits on these contributions are the same as those for traditional IRA accounts.
The Concurrent HRO Multiple Employer Plan
With the Concurrent HRO Multiple Employer Plan, you can enjoy all the benefits of being part of an MEP without sacrificing any flexibility, particularly in terms of plan options. A well-designed plan is a crucial component of a strategic compensation package for your employees, and as your 401(k) administrator, we will tailor the plan to meet your company’s objectives and help your employees plan for retirement.
Concurrent HRO takes on the fiduciary responsibilities, costly plan audits, and time-consuming administration, freeing you up to focus on other critical aspects of your business. Moreover, your employees have access to experienced retirement advisors who offer individual investment consultations for them to achieve their long-term financial objectives. Most importantly, this plan allows the flexibility for your employees to opt-in and contribute as little or as much as they would like into their 401(k) account.
Concurrent HRO handles all of the day-to-day administration tasks, such as maintaining current enrollment and contribution changes, submitting employee contributions, etc., allowing you to focus on your core business operations. Remain in compliance with the CSSP while enjoying quality retirement benefits for your employees without the administrative burden.
Contact us today for more information on the Colorado Secure Investment Savings Program or find out on how you can join Concurrent HRO’s Multiple Employer Plan.