Changes to Connecticut Retirement Security Program Begin July 1

Employers in Connecticut that do not have an approved retirement plan for their employees can be directly penalized with fines ranging from $500 to $1,500, depending on the size of their company, for not participating in the MyCTSavings retirement program under a new state law that took effect July 1.

​Under Public Act 25-30, employers who do not respond to three notices of noncompliance from the Comptroller’s Office will face a civil penalty of $500 if they employ between five and 24 employees; $1,000 for companies with 25 to 99 employees; and $1,500 for a company with more than 100 workers.
 
Also, the bill extends the program to cover personal care attendants (PCAs); changes the default contribution rates to mirror federal law; and allows the State Comptroller to provide an applicable retirement saving vehicle for participants receiving a federal Saver’s Match contribution.
 
“My office seeks reasonable and less severe enforcement mechanisms, in line with the practices of other states with similar programs, using reasonable financial penalties,” Comptroller Sean Scanlon said in written testimony on the bill. “Penalties would only be assessed after repeat notifications are sent to the business, giving employers ample opportunity to either elect their own private plan or join MyCTSavings.”