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Connecticut Launches MyCTSavings Program

Many employers in the state will be required to register to meet their obligations.&#160;<br/>

Many employers in the state will be required to register to meet their obligations. 

In early 2022 Connecticut launched its MyCTSavings retirement savings program.

All eligible private-sector employers in the state with five or more employees will be required to register and participate in MyCTSavings or offer an employer-sponsored retirement plan that satisfies the requirement (i.e. - 401(k) plan).

According to the MyCTSavings website, more than 600,000 private-sector employees have no employer-sponsored retirement savings plan in Connecticut.

For Employers

Connecticut requires participation by employers with five (5) or more employees and who do not currently offer a retirement plan to employees.

All employees who have been paid more than $5,000 in the calendar year will be automatically enrolled by their employer with a contribution of 3% of the employee’s payroll wages designated to a Roth IRA in the program. Employers are not permitted to make contributions to the program.

There will be rolling registration deadlines based on employer size as follows:

  • Employers with 100 or more employees: June 30, 2022
  • Employers with 26 to 99 employees: Oct. 31, 2022
  • Employers with 5 to 25 employees: March 30, 2023

Employers impacted by this state mandate will be notified by MyCTSavings, and businesses will be required to register or certify exemption if they already offer a retirement plan at

Employers will be responsible for providing each eligible employee with information about the state-run program within 30 days of the employee’s hire date and documenting it. They also must deduct and remit employee contributions in a timely manner to the program.

An employer could face civil penalties for failing to enroll an eligible employee or remit contributions in a timely manner.

For Employees

Employees are eligible to participate if:

  • They are 19 years of age or older

  • They are employed with an employer for at least 120 days

  • They are employed and earn wages in Connecticut

Employees will be automatically enrolled in the program but can voluntarily opt out. They can also change their enrollment rate from the default rate of 3 percent. There is also an annual auto-escalation up to 6%.  

The Connecticut Retirement Security Authority plans to provide an age-appropriate target date funds to invest each employee’s account, and once the employee reaches normal retirement age then 50% of the account will get invested in the lifetime income investment. Participants will have the option to invest a higher percentage in the lifetime income investment.

A participant may contribute up to the annual IRS contribution limit for a Roth IRA. Employees, should they change jobs, may continue to contribute to the account or roll it over to another retirement account.

We can help

As Business Retirement Plan advisors, we continue to monitor all available retirement plan options and provide guidance to our clients and their businesses. Competetive small businesses should use incentives such as a retirement program to enhance their ability to attract and retain younger employees and help them start building retirement savings.

Businesses that prefer to implement a workplace retirement plan such as a 401(k) will also satisfy the state mandate. We can help business owners weigh the pros and cons of the different options to meet the new Connecticut requirements. Contact us at or (203) 354-3131.