Employers with more than 100 employees have until June 30 to join the public pension plan or opt out of the program.
The Connecticut Retirement Security Authority launched MyCTSavings after years of delay in May.
Connecticut employers with five or more employees — each paid a minimum of $5,000 during the calendar year — are Required by law to join the program if they do not offer a pension plan to employees.
Depending on the size of the business, covered employers must register with the state in three waves.
The first deadline for employers with 100 or more employees is June 30, 2022.
Employers with 26 to 99 employees have until October 31, 2022 and employers with 5 to 25 employees have until March 30, 2022.
Qualifications and Responsibilities
Employers who offer employees qualified retirement plans are exempt from participating, but must still certify that the exemption.
Qualified employer-sponsored retirement plans include those governed by Sections 401(a) of the Internal Revenue Code (including a 401(k) plan); qualified annuity plan under section 403(a); tax-sheltered annuity plan under section 403(b); Simplified Employee Retirement Plan under Section 408(k); a SIMPLE IRA plan under section 408(p); or government deferred compensation plan under section 457(b).
Qualified employer-sponsored plans do not include payroll IRAs.
Eligible employees will automatically be enrolled in the program.
Once employees are enrolled, they can choose to opt out of the program.
By default, enrolled employees will see a 3% deduction from their gross pay, but they can choose to manually adjust their contribution rate at any time.