Do You Know about Connecticut’s Mandatory Retirement Savings Plan?
retirement savings
June 20, 2022

A new Connecticut law was established to assist the estimated 600,000 Connecticut residents that do not have access to a retirement savings plan through their employer.  Why haven’t employers heard about it?  The idea for a state-mandated program actually began back in 2014 with a 2-year feasibility study.  Then, in 2016, the Connecticut Retirement Security Authority was established, but it’s taken until now to finalize all the aspects of the program and launch it. 

The plan is now called MyCTSavings and it became effective on April 1, 2022.  A growing number of other states are also enacting similar legislation.  

Which CT Employers Are Covered?

All Connecticut employers, both for profit and not-for-profit, are legally required to join MyCTSavings if they employ at least 5 workers who have earned $5,000 or more as of October 1st of the previous year and they don’t already offer an employer sponsored qualified retirement plan.

Which CT Employers Are Exempt?

Connecticut employers who DO offer a qualified employer retirement savings plan are exempt. However, these employers still need to upload their information to MyCTSavings to certify that they are exempt from participating.

Registration Periods
All covered employers are required to register with MyCTSavings, or certify their exemption as follows:
100+ employees no later than June 30, 2022
26-99 employees no later than October 31, 2022 
5-25 employees no later than March 30, 2023

Employers will receive a communication from with an access code and filing instructions.  These communications are being sent to employers now through early 2023.  Employers will be directed to a portal to answer a series of questions.  Unless exempt, employers will upload payroll and employee information into the portal, submitting the employee’s payroll deduction each pay period.

Employee Eligibility
Employees who are:

  • at least 19 years old
  • have at least 120 days of service and
  • perform services for work in Connecticut

How the Plan Works

  • Employees will have a 30 day opt-out period.  After that, they may opt out or opt in at any time
  • The default employee deduction will be 3% post-tax, unless the employee chooses a different percentage
  • Employees have choices of several ways to invest their contributions
  • The employer manages the payroll deductions and pays them into the plan
  • There are no fees of any kind to the employer, and no employer contributions
  • Employee contributions will go to a Roth IRA (in 2022, the maximum contribution is $6,000)

Proponents of this new legislation note that this program allows Connecticut workers, especially those working in small businesses, to have an avenue to save for their retirement. 

For more information about this program, visit: myctsavings.com.

Andy Thiede

Andy Thiede


With 25+ years of generalist HR experience, her skills also include benefits and compliance. Andy has advanced HR certification: SHRM-SCP.


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