|
MyCTSavings Update: 1% automatic Annual Increase in Savers’ contribution rates and a reminder to update payroll records
Savers with qualifying MyCTSavings accounts were notified in November that their payroll contributions would be automatically increased by 1% in January 2026. Savers can opt-out of the increase or change their contribution rate at any time by logging into their online account. Annual Increases can help savers meet their retirement savings goals more quickly, without having to remember to make the change themselves. The Annual Increases occur each year until a saver reaches a maximum of 10%.
Automatic saving features are increasingly adopted by existing retirement plans and are required by federal law in plans established after 1/1/2024. According to a recently released Vanguard study, “Among plans automatically enrolling employees in 2024, 69% used all three features of an autopilot design. These plans automatically enrolled employees, automatically increased deferral rates annually, and automatically invested participants’ assets in a balanced fund.” Read details in Vanguard’s Report How America Saves 2025.
Employers will see the increased contributions on payroll reports beginning in January 2026. If your employees have questions, direct them to: https://osc.ct.gov/myctsavings/faq for details.
January is also a good time to review and update your payroll. Add your new employees, full and part-time, aged 19+, to the MyCTSavings portal, and change the status of employees who no longer work for you to “terminated.” MyCTSavings accounts are portable, so employees who leave can continue to save later.
| 
