Registration for State-Sponsored Retirement Program Proceeds

Recently, the state’s new retirement savings program, known as MyCTSavings, opened for registration. The program was created by 2016 legislation (Public Act No. 16-29) and is designed to help private-sector employees without access to employer-sponsored retirement plans. The Connecticut Retirement Security Authority is responsible for overseeing the program.

MyCTSavings requires employers to either sponsor their own retirement plans or participate in the new state program. Specifically, an employer, whether for profit or not-for-profit, must facilitate the program if it:

• Employed five or more employees in Connecticut on October 1 of the previous calendar year, and;
• Paid at least five employees $5,000 or more in taxable wages in the previous calendar year, and;
• Does not currently provide a qualified, employer-sponsored retirement savings plan, such as a 401(k) plan, 403(b) plan or SIMPLE IRA plan. (Payroll deduction IRAs are not considered a qualified plan.)

Employers who participate in the program enroll employees who have been employed for at least 120 days. The employees make their own contribution and investment elections. However, automatic enrollment at 3% of pay applies to employees who do not opt out or choose a different contribution rate. Default investment elections also apply to those who do not make affirmative elections within a certain timeframe. Contributions under the program are made to Roth IRAs. Employees are responsible for determining their Roth IRA eligibility.

Significantly, the state requires all employers to register with the program regardless of whether they will be participating or claiming an exemption (e.g., because they sponsor a qualified retirement plan). According to the program website, throughout 2022 and early 2023, communications with unique access codes and instructions are being sent to employers who can use this information to register. For employers with 100 or more employees, the registration deadline is June 30, 2022. For employers with 26 – 99 employees, the deadline is October 31, 2022; for employers with 5 – 25 employees, the deadline is March 30, 2023.

Employers should be aware of MyCTSavings and visit the program website, which includes helpful employer FAQs, for further details. Large employers should be mindful of the upcoming June 30, 2022, registration deadline.

Public Act No. 16-29 »
MyCTSavings Employer FAQs »