Employers Who Don't Offer Retirement Plans Must Enroll in the Connecticut Retirement Savings Program by March 30, 2023

     Connecticut private sector employers with 5 or more employees who do not already offer a qualified retirement savings plan must register with the Connecticut Retirement Security Authority and begin enrolling employees in the state sponsored retirement program, MyCTSavings, by March 30, 2023. Employers who do offer a qualified plan must certify they do so with the Authority.  

      The program, first launched in 2022, is reaching its enrollment deadline. So far, some 900 employers have enrolled, and plan assets have reached $1.7 million dollars.

      Under the program, Connecticut based employees who have worked at least 120 days for a qualified employer, and are age 19 or older, are automatically enrolled by their employer. The employer must provide certain program documents to the employee upon enrollment.

      Once enrolled by the employer, the employee will receive a notification from the third party Program Administrator. The employee then has 30 days to establish an online account to manage their contribution levels and investment choices.

      During the 30 day period following notification from the Program Administrator, the employee may opt out of the program by changing their contribution level to 0%, or remain in the program and select their level of contribution and investment options.

      If the employee does nothing, the default contribution level is 3% of earnings. All contributions are placed in an individual Roth IRA and held in a Target Retirement Date Portfolio based on the employee’s normal retirement age. Employer contributions are not permitted.

      Assuming the employee does not opt out, payroll deductions will begin once the 30 day period following notification from the Program Administrator ends.

      Employees may thereafter change their contribution level, investment options, opt out or back in, at any time. The funds in the Roth IRA are portable so that if an employee changes jobs their account follows them.

      Employees who are not properly enrolled in the program by their employer may contact the Connecticut Department of Labor or directly bring a civil action in the Superior Court to force enrollment and recover costs and attorney’s fees.

      Employers and employees can access the Authority’s website here. More detailed information about the Program is provided here.