The latest deadline for registering with the Connecticut Retirement Security Program — also known as MyCTSavings — looms. And the program itself could be fine-tuned if legislation now before the state House of Representatives is enacted.
The Connecticut Retirement Security Program is a state-sponsored program that provides retirement plan coverage for those whose private-sector employers do not offer a retirement plan. A pilot was launched in September 2021, and the program was formally launched six months later.
MyCTSavings is mandatory for businesses with five or more employees. However, while it requires their participation, it does not require that employers contribute to the program; it only requires that they provide a payroll deduction mechanism by which employees contribute to a Roth IRA. It is not mandatory for employers with fewer than five employees or that already offer a retirement plan.
Marching to the Latest Deadline
The program has been phased in gradually in waves. The first two waves are over, their deadlines having passed; the deadline for the third wave is March 30, 2023.
|Wave||Employer Group||Registration Opened||Registration Deadline|
|Wave 1||100 or more employees||April 1, 2022||June 30, 2022|
|Wave 2||26-99 employees||April 1, 2022||October 31, 2022|
|Wave 3||5-25 Employees||April 1, 2022||March 30, 2023|
A bill, HB 06552, is now before the Connecticut House of Representatives that would implement the recommendations of the Comptroller concerning the administration of the Connecticut Retirement Security Program.
Protection. The bill would protect advisory board members from civil liabilities for debts, obligations or liabilities of the program.
The bill also contains provisions that would affect qualified employers. It says that qualified employers shall not:
- be a fiduciary, or be considered to be a fiduciary, over the program;
- bear responsibility for the administration, investment or investment performance of the program; or
- be liable regarding investment returns, program design and benefits paid to program participants.
Further, it would protect employers from liability for an employee's decision regarding whether or not to participate in the program or for the investment decisions of the board or of any enrollee.
Intergovernmental Cooperation. The legislation also would allow the Comptroller to enter into an intergovernmental agreement, memorandum of cooperation or memorandum of agreement with another state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States relating to areas of collaboration, including, but not limited to:
- data collection;
- shared program administration;
- shared financial services;
- pooled investment of assets;
- outreach support;
- program evaluation;
- data collection; and
- participant privacy.
Status. The bill is now before the House Committee on Labor and Public Employees.
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