All private Connecticut employers with five or more employees in the state must take action with MyCTSavings by August 31, 2023, whether or not they are required to enroll their employees in that program.
Under a law passed in 2016, Connecticut employers with at least 5 employees must enroll employees in a state-run retirement plan, known as MyCTSavings, unless they offer their own retirement plan, such as a 401(k) plan, 403(b) plan, simplified employee pension plan or simple retirement account. The majority of the employers reading this alert likely already offer one of those retirement plans, and may not be aware that there is still something for them to do.
According to the MyCTSavings website, employers who are exempt from facilitating enrollment into the state-run program must certify their exemption online, through the program’s online portal. The deadline for compliance is August 31, 2023. Currently, there do not appear to be any penalties imposed on an employer that fails to certify its exemption, but complying may prevent administrative hassles down the road.
Employers who are not exempt from the program, i.e. those who (i) do not already sponsor a retirement plan, (ii) had five or more employees in Connecticut on October 1, 2022 (who each made at least $5,000 in 2022), and (iii) were in existence at all times in 2022 and 2023, will need to act by August 31, 2023 to facilitate enrolling their employees in the MyCTSavings program. More information on those requirements, and access to the registration portal, can be found on the MyCTSavings website.
If you have questions about how this applies to your company, feel free to contact Kelly Hathorn.