The Arvada Chamber has assembled explainer posts for five major Colorado laws that impact businesses in 2024. Read below for this legislation’s eligibility, key dates, and the requirements for businesses.
Colorado Bills 101
Colorado SecureSavings Program
Following the 2020 legislative session, the Colorado General Assembly signed SB20-200 into law, creating the Colorado SecureSavings Program (CSSP). The program launched in January of 2023, and as of last April, nearly 3,000 employers had enrolled in the program, and more than 2,400 individuals had begun saving with the CSSP.
In Colorado, more than 40% of the private-sector workforce lacks access to a retirement savings plan at work, which equates to close to a million workers. The CSSP was implemented to address this need, in order to help employees in Colorado save for retirement. The program allows employers to help their team members save in a portable Roth IRA account that transfers even if they change jobs or leave the workforce.
While traditional retirement plans are tied to the employer, the CSSP is tied to the employee and it travels with the individual as they move around within and outside of the workforce. This gives just about all private sector workers the ability to save for retirement, including self-employed workers, seasonal workers, and gig economy workers. Uber drivers or seasonal farm workers now have the option to enroll in a Roth IRA and save for the future, even if they don’t work for an organization that offers a retirement plan. The CSSP also allows small and medium sized businesses to be more competitive and offer more appealing benefits and compensation packages.
The CSSP for Businesses
The CSSP is a program that allows companies to help their employees save for retirement at no cost to the employer. The program boasts an easy 15-minute enrollment process for businesses and minimal ongoing administration and maintenance.
All employers in the state that have been in business for at least 2 years, have 5 or more employees, and don’t offer a qualified retirement plan for employees must offer Colorado SecureSavings to their employees. Eligible businesses will receive a notice from the state notifying them that they are required to register for SecureSavings. The notice will include a SecureSavings access code that businesses will use along with their Federal Employer Identification Number (EIN) to register at this link.
Under Colorado law, employers are required to provide their employees with some sort of retirement savings program, whether it is a traditional retirement savings program like a pension or 401(k) plan, or a Colorado SecureSavings account. Employers that already offer a qualified retirement savings plan are not required to offer SecureSavigns, but must certify their exemption from the program. Importantly, businesses that offer SecureSavings are not required to match employer contributions, making the program free of any costs or fees for the employer. This is designed to help small businesses in the state hire and retain good employees, and offer more competitive compensation and benefits.
As a business, there are three steps to complying with the SecureSavings program and offering your employees the benefits. First, register your business here, set up your ID and password, answer a few questions about your payroll process, set up payment, and add employees. Once you have added your employees you will explain their options within the 30-day window for them to opt-out or customize their plan. After those 30 days, you will input your employees’ choices, begin payroll deductions, and submit information for the employees that choose to participate in the program. Lastly, you will stay in compliance by maintaining payroll contributions, keeping updated records, and adding and removing employees as your team changes.
The CSSP for Employees
As an employee, Colorado SecureSavings allows you to set aside a portion of your paycheck to save for retirement. The default savings rate for the CSSP is 5%, but employees have the option to change that rate or opt out of the program at any point. The program allows the employee to be in complete control of their Roth IRA retirement account, even if they change jobs or leave the workforce.
Once enrolled in the CSSP, savers will have the power to change their contribution rate, change their investment choices, designate beneficiaries, and make withdrawals. There is a 0.32% annual fee charged on the total amount in the employees’ account, as well as a $22 annual account fee to pay for the administration of the program and operating expenses.
All employees over 18 years old who have earned taxable wages from a Colorado employer for at least 180 days are eligible to participate in the program. This includes self-employed workers and gig workers, who can register for the CSSP as well.
Employees of a business that offers the SecureSavings program will have 30 days to opt-out or customize their plan. Otherwise, after 30 days, employees will be automatically enrolled at a default savings rate of 5%, and that amount will be deducted from the employee’s paycheck after taxes have been taken out.
Employees who are offered Colorado SecureSavings from their employer will be automatically enrolled unless they choose to opt-out, but self-employed workers can register for the CSSP program here.
Through the B.O.L.D. 2026 initiative, Advocacy KAPS Council, the Jefferson County Business Lobby (JCBL), and consistent outreach to elected officials at all levels of government, the Arvada Chamber strives to stay informed on the latest policy developments while advocating for a strong local economy. Find resources and ways to engage at arvadachamber.org/advocacy.
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