CONNECTICUT, USA — Connecticut has launched a new retirement savings option for residents working private-sector jobs who aren't offered a plan through their employer.
The program, called MyCTSavings, was designed to be easy and flexible for both the employer and employee, according to Comptroller Natalie Braswell.
“Everyone deserves a financially secure retirement,” said Braswell. “The MyCTSavings program creates new opportunities for workers to plan for their futures and fills a critical need in the marketplace. The plan is designed to be easy for employers to maintain and is optional for workers to participate. I’m grateful to everyone who worked to get us to this point and look forward to the hardworking people of Connecticut benefitting from this important program.”
Braswell said for employers, the program seamlessly integrates into any payroll process.
A pilot program began in October, enrolling several employers to test processes and gain feedback.
“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. “Expanding opportunities like this not only helps workers themselves, but it also supports small businesses in their efforts to attract employees. I extend my gratitude to former Comptroller Kevin Lembo on his efforts to get MyCTSavings up and operating, and to Comptroller Braswell on her efforts to see it through to its launch.”
House Republican Leader Vincent Candelora on Thursday said, “The last thing mom and pop shops on our main streets need right now is another onerous mandate from their government, and this state-sponsored retirement program fits that description to a tee. Forcing employers—particularly those with limited staffing resources—to jump through more bureaucratic hoops under threat of penalty won’t help them grow stronger and create more jobs here."
In early April, letters will be sent to approximately 30,000 Connecticut employers informing them of the MyCTSavings program, and the requirements to participate.
Employers are required to register if they have more than five employees and do not currently offer a qualified retirement savings option.
Participation for employees is voluntary – they can choose to remain enrolled or even opt-out and then re-enroll later, according to the comptroller's office.
The regular contributions to a Roth IRA help save for retirement and the account is portable; if a participant changes jobs, their account follows them, officials said.
“As a small company, it can be hard to compete with benefits packages at large corporations,” said Axel Collazo, Assistant Manager of Ace Transportation of Tolland. “It was easy to enroll and our employees who chose to participate are already excited about the opportunity to start saving for retirement.”
The program is sponsored by the Connecticut Retirement Security Authority.
For more information, or to enroll, visit the MyCTSavings website.
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Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.
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