Connecticut Extends Deadline for Employers to Comply With Mandatory Retirement Savings Program
Retirement Savings Jar with coins

New Deadline is August 31, 2023

Connecticut has established a state-run employee retirement savings program ("MyCTSavings") that launched in 2022 and is administered by the Office of the State Comptroller. The individual retirement account (IRA)-based program generally requires that private-sector employers with five or more employees in Connecticut — at least five of whom have been paid $5,000 or more in the previous calendar year — join MyCTSavings if they do not currently offer a qualified, employer-sponsored retirement plan for their employees.

Employer compliance with the program has been phased in based on the number of employees a business has, starting with those with 100 or more employees. The deadline for the last phase, applicable to small businesses with between five and 25 employees, was March 30, 2023. However, the State Comptroller’s office announced an extension of time for all employers to register to August 31, 2023.

Covered employers may register for the MyCTSavings program directly at After registering, the employer will receive information and instructions regarding MyCTSavings, including materials to be distributed to employees. Note that eligible employees are automatically enrolled in the program, but they may change the automatic salary deferral percentage[1] or opt out of the program.

Employers that offer a qualified, employer-sponsored retirement plan for their employees are exempt from compliance with the program but should certify their exemption on the MyCTSavings portal -, by the August deadline. 

Employer Action Necessary

Although no employer contributions are permitted under the program, it does impose some requirements on employers. If they have not done so already, Connecticut employers with five or more employees (at least five of whom have been paid $5,000 or more in the previous calendar year) and that do not sponsor a qualified retirement plan need to take the following steps:

  • register with MyCTSavings by August 31 (employers that offer a qualified plan for their employees are exempt and should certify their exempt status on the MyCTSavings website by that date);
  • provide certain required program information to eligible employees;
  • begin employee payroll deduction contributions and timely remit them to the state program; and
  • direct employees requesting information about the program or investment options to go to or call 833-811-7436

Penalties for Non-Compliance

If a business fails to enroll an employee in the program, the Office of the Comptroller could bring a civil action to require enrollment. In addition, the state legislature is considering a proposal imposing “a small penalty” for not complying with registration requirements. Further, an employer that fails to timely remit payroll contributions may incur penalties, including assessments for wage and hour violations.

Employers with questions about the MyCTSavings program, alternative qualified plans, or about other employee benefits issues, may contact one of Pullman & Comley’s employee benefits attorneys.

[1]  The default savings rate for a MyCTSavings account is 3% of an employee’s gross pay, and that amount is deducted after taxes have been taken out.

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