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Connecticut Extends Deadline to Register for MyCTSavings Retirement Program

  • Retirement
  • Article
  • 6 min. Read
  • Last Updated: 11/24/2023

An employer speaks with an employee about a retirement program.
Connecticut's MyCTSavings program aims to address the retirement savings crisis. Eligible employers in the state have upcoming registration deadlines to meet their obligations.

Table of Contents

Connecticut recently launched its MyCTSavings retirement savings program following the success of its pilot program in the fall of 2021. All eligible private-sector employers in the state with five or more employees will be required to participate in MyCTSavings or offer an employer-sponsored retirement plan that satisfies the requirement.

The deadline for registration for all businesses with five (5) or more employees passed as of Aug. 31, 2023.

Businesses in the Constitution State and their employees will finally get to benefit from a state-mandated retirement program that originally was enacted into law in 2016.

The Connecticut program, similar to nearly a dozen other states that have enacted programs, aims to address the ongoing and growing retirement crisis in the United States.

Why Does Connecticut Need Employee Retirement Savings Options?

More than 600,000 private-sector employees in Connecticut have no access to an employer-sponsored retirement savings plan, according to the state Comptroller’s office. In the U.S., households nearing retirement have a median retirement account balance of less than $15,000.1

There are 360,127 small businesses in Connecticut, according to 2022 data from the U.S. Small Business Administration, and more than 741,920 people are employed by those businesses2.

Participants in the MyCTSavings program — a Roth auto-IRA — can help employees start saving for a dignified retirement and gain a key recruiting and retention tool.

What Employers Should Know About MyCTSavings Program

Connecticut requires participation by employers with five (5) or more employees and who do not currently offer a retirement plan to employees. Private employers with four or fewer employees may also choose to participate in the program but are not required.

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.

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

Smaller businesses can enroll at any time and do not need to wait for their deadline to arrive. 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. The Connecticut Retirement Security Authority will determine any possible penalties for noncompliance but has yet to release what such penalties would be.

What Employees Should Know About MyCTSavings Program

Employees are eligible to participate if they meet the following criteria:

  • They are 19 years of age or older
  • Employed for at least 60 days
  • Paid more than $5,000 in the prior calendar year

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.

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.

Looking forward

Paychex will continue to monitor and provide updates on state retirement plans if there are changes to the program or if additional information is available. Small businesses can provide a perk such as a retirement program to enhance their ability to attract and retain younger employees and help them start building retirement savings. Looking for support with your retirement plan in Connecticut? Businesses that want to implement a workplace retirement plan such as a 401(k) can do so through a provider such as Paychex and satisfy the state mandate. 

1National Institute of Retirement Savings, “The Continuing Retirement Savings Crisis”

2U.S. Small Business Administration Office of Advocacy, 2022 Small Business Profile

Other Resources

SECURE Act: Tax credits and benefits to establishing a workplace retirement plan

SECURE Act 2.0: What other enhancements are possible if bill becomes law?


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* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.

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