In Case You Missed It: Catch the MyCTSavings Webinar from AARP
Calling all Connecticut employers: Did you tune in to AARP’s recent webinar that featured an overview of the state’s new retirement savings program, MyCTSavings?
If you happened to miss it, no worries! We’re recapping everything discussed during this helpful event. Want to watch it in full? We have a complete recording here:
Saving for retirement is a growing concern
Did you know that across the country, there is a growing gap of workers who don’t have enough savings for retirement?
As of 2021, 51% of Americans have increased concerns about retirement due to the pandemic, and nearly 70% of Americans are worried they don’t have enough savings for their future.
While millions of workers don’t have easy access to retirement savings through their paychecks, Connecticut has more than 600,000 workers who don’t have access to an employer-sponsored retirement plan.
MyCTSavings is here to help
MyCTSavings was designed by the Program to help address the gap in retirement savings access with small businesses who may not be able to offer their own retirement plan due to cost, administrative burden, or risk to their business to act as a fiduciary.
MyCTSavings addresses all three of these key issues:
The program is free to businesses
It is very simple to facilitate, often taking just minutes every pay period
Businesses have no fiduciary responsibilities
Employers simply need to facilitate the program and maintain their employee records while participating.
How MyCTSavings works for employees
The program works by enrolling employees in a Roth Individual Retirement Account (IRA), helping them easily and seamlessly save for their retirement through payroll deductions. Eligible employees will be automatically enrolled and can select their account options, including their contribution rate and investment mix, or opt out. Once enrolled, they have complete control to start or stop contributing, change their contributions rate, or update their investment elections whenever they want or need.
Who is required to participate in MyCTSavings?
Any employer, whether for profit or not for profit, must facilitate the State’s program if:
As of October 1st of the previous calendar year, it employed five or more employees in Connecticut, and;
It paid at least five employees $5,000 or more in taxable wages in the previous calendar year, and;
It does not currently provide a qualified, employer-sponsored retirement savings plan
Implementing MyCTSavings is as easy as 1-2-3
This program was designed to be easily implemented in an easy, three-step process.
An employer will register through a secure, online portal with a unique access code. For a great tutorial on how to register, watch this video
They will then be prompted to upload payroll and employee information in the system
To consolidate the amount of time an employer needs to spend in the portal, we suggest uploading contributions every pay cycle, as well as ensuring staff lists are up to date
From there, employees will be automatically enrolled into their accounts and the program will directly communicate with employees to provide notices, educational materials, account details, and more. Each employee can decide if they would like to stay enrolled in MyCTSavings or opt out.
Now is the time to enroll in MyCTSavings
MyCTSavings officially launched on April 1st of this year and is now available to all eligible employers. Employers who fall under the program’s criteria will need to either sign up or certify their exemptions by the following deadlines:
Employers with 100+ employees: Respond by June 30th, 2022
Employers with 26-99 employees: Respond by October 31st, 2022
Employers with 5-25 employees: Respond by March 30th, 2023
Program resources for MyCTSavings
We created several helpful resources for employers interested in learning more about MyCTSavings: