Dear Clients, Business Associates and Friends,

The State of Connecticut enacted legislation in 2016 to address the lack of retirement planning options available to private sector employees. This legislation created the Connecticut Retirement Security Authority (CRSA), which implemented MyCTSavings, a state-sponsored retirement savings program for employees whose employers do not offer a retirement savings plan. The program officially opened for employer registration as of April 1, 2022.

What Do You Need To Do Now?

Employer:

• All types of private-sector employers (both for-profit and nonprofit) with five or more employees in CT – at least five of whom have been paid more than $5,000 in the calendar year – and in existence for at least one year are required to sponsor a qualified retirement plan or participate in MyCTSavings.
• MyCTSavings is notifying employers when it is time for them to register via mail or e-mail. To register, employers will need their Federal Employer Identification Number (EIN) and the MyCTSavings Access Code from the notification. Employers with 5-25 employees have a 3/30/23 registration deadline.
• Employers that already sponsor a qualified retirement plan should certify their exemption on the MyCTSavings website.
• There are no employer fees to take part in the program and employers are not allowed to make contributions.

Employees:

• Employee accounts are Roth IRAs. Roth contributions are funded with after-tax dollars.
• Automatic deductions from the employee’s wages will be made via payroll deductions to their Roth IRA account in the program. The default deduction amount will be 3% of the employee’s gross pay. The deduction can be changed by the employee on the MyCTSavings website.
• Employees must opt-out within 30 days of enrollment on the MyCTSavings website if they choose not to participate.
• Employees who are at least 19 years of age are eligible.

If you have not done so already, please be sure to access available resources and complete your registration at www.myctsavings.com.

If you have any questions about how this guidance may impact you, please get in touch with your BHCB team contact. We continue to be here, working for you, to provide ongoing support and information.