Connecticut Comptroller Natalie Braswell announced March 24 the launch of MyCTSavings, the state-run retirement savings program intended to provide coverage for private-sector employees whose employers do not offer them a plan. A pilot was launched in September 2021.
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 to contribute to a Roth IRA. It is not mandatory for employers with fewer than five employees or that already offer a retirement plan.
In early April, letters will be sent to approximately 30,000 Connecticut employers informing them of the program and the requirements to participate.
Employees are automatically enrolled, but their participation is voluntary; they can choose to opt out, and also can re-enroll later. Participants’ accounts are portable; if they change jobs, their account follows them.
The program is sponsored by the Connecticut Retirement Security Authority, of which Braswell serves as Chair. Vestwell was selected as the program’s third-party administrator.
“Everyone deserves a financially secure retirement,” said Braswell in a press release. “The MyCTSavings program creates new opportunities for workers to plan for their futures and fills a critical need in the marketplace.”
“This program provides an option for workers who don’t currently have the opportunity through their employer to save for retirement and make smart investments in their futures,” said Gov. Ned Lamont (D). “Expanding opportunities like this not only helps workers themselves, but it also supports small businesses in their efforts to attract employees.”
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