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June 9, 2025
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Understanding MyCTSavings: A Guide for Connecticut Employers
MyCTSavings is a retirement savings program sponsored by the State of Connecticut. Designed to help private-sector employees prepare financially for life after work, it also gives employers a simple, low-touch way to offer access to a qualified retirement plan — without assuming fiduciary responsibility.
Enrollment opened in April 2022
Employers automatically enroll eligible employees and handle payroll deductions and contributions
Businesses with 5 or more employees must have enrolled in MyCTSavings or offered an alternative plan by August 31, 2023
If you’re a Connecticut-based employer unsure whether this applies to your business, this guide explains who’s required to participate, how to comply if you already offer a plan, and how to stay in line with the law.
Across the U.S., more than 57 million private-sector employees don’t have access to retirement plans through their workplace. In Connecticut alone, that number exceeds 600,000 workers. Programs like MyCTSavings aim to close this gap by requiring businesses to offer retirement plan access.
Although enrollment for MyCTSavings officially began in April 2022, the law was passed back in 2016 and is overseen by Connecticut’s Retirement Security Program under the Office of the State Comptroller.
Key details include:
Employers with 5 or more employees, and who paid them $5,000 or more in the previous year, must offer a retirement savings plan
Businesses that already offer a qualified retirement plan are exempt
Employers can either use their own provider or enroll in the state’s MyCTSavings program
There are no employer fees or fiduciary obligations for participating
June 30, 2022 – Employers with 100+ employees
October 31, 2022 – Employers with 26–99 employees
August 31, 2024 – Employers with 5–25 employees (extended from the 2023 deadline)
Eligible employees are automatically enrolled within 30 days of hire, unless they choose to opt out. Once enrolled, contributions are deducted automatically from each paycheck.
To qualify, employees must:
Be at least 19 years old
Have been employed for 120 days or more
The default contribution rate is 3% of gross pay, though employees can adjust this amount at any time.
MyCTSavings is a Roth Individual Retirement Account (IRA) funded with after-tax dollars. Contributions grow tax-free, and withdrawals in retirement are not taxed, assuming eligibility requirements are met.
The account belongs to the employee and moves with them if they change jobs. Participation is optional, and workers can opt out or re-enroll at any time.
After enrollment, employees have 30 days to decide whether to stay in the plan or opt out. Payroll deductions begin with the next available payroll if they stay enrolled.
You may be exempt from MyCTSavings if you already offer a qualified retirement plan. Eligible alternatives include:
401(a), including 401(k) plans
403(b) and 403(a) annuity plans
408(k) SEP plans
408(p) SIMPLE IRAs
457(b) government deferred compensation plans
To claim an exemption, you’ll need:
A unique access code
Your Employer Identification Number (EIN)
Connecticut law requires all eligible employers to comply or face penalties. As of May 2023, state legislation authorized fines of $500 to $1,500 per employee for noncompliance — whether that’s failing to enroll in MyCTSavings or not offering a private plan.
When businesses give their teams a way to save for the future, everyone wins. Workers gain security and peace of mind, while employers benefit from improved retention, boosted morale, and a more engaged workforce. With Beyond supporting your payroll and benefits setup, offering retirement access is easier than ever — and compliant, too.
