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Is your organization compliant with the Connecticut's Retirement Security Law, MyCTSavings?
CT State law requires that employers with 5+ full-time and/or part-time employees, that have been operating since at least January 1st of the previous calendar year, offer a retirement savings option. Employers that already provide a plan are considered compliant with the law. If your business does not currently offer a retirement option, you must register and enroll your employees in the MyCTSavings program -- which is free for employers -- or adopt another qualified retirement plan, like a 401(k), 403 (b), or SEP to be compliant.
Recent legislation established financial penalties for qualified employers that do not either adopt a private plan or participate in MyCTSavings. Enforcement is scheduled to begin in 2026, tentatively mid-year. Employers that have not responded to prior notices will be sent additional communications by email or postal mail before any penalties are assessed. Multiple notices will be sent to ensure employers have ample time to act. Annual fines will range from $500 to $1,500 annually, based on the number of employees.
To avoid future penalties, MyCTSavings urges employers that have not yet responded to previous outreach to either register for the MyCTSavings program or adopt a private retirement option as soon as possible. MyCTSavings is providing this compliance information well in advance of enforcement, to allow businesses plenty of time to select a retirement option that works best for them. MyCTSavings will continue to provide updates as the enforcement scheduled is finalized.
Visit myctsavings.com to register.
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