Get answers to frequently asked questions
Connecticut’s new state-sponsored retirement savings program is open right now. It was created to help the 600,000 private-sector employees without access to employer-sponsored retirement plans. We understand you’ll have questions. Here are the answers to some frequently asked questions. If you have additional questions, we’re here to help.
- Account Access
- Contributions
- Eligibility
- Employer Registration
- Fees and Costs
- General
- Investments
- Linking Bank Accounts
- Saver's Credit
- Security
- Self-enrollment
- Tax Forms
- Withdrawals
- Why does a program like this exist?
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The retirement savings crisis is a serious problem in the United States. In fact, nearly 70% of Americans are concerned that they don’t have enough money for retirement.1 In Connecticut alone, about 600,000 private-sector workers don’t have access to a qualified retirement savings plan at work, and the State moved quickly to provide expanded access to easy retirement savings through the workplace.
Reference
1. “Mind Over Money.” Capital One, 27 Jan. 2020, www.capitalone.com/about/newsroom/2020-capitalone-mindovermoneystudytips. - Why isn’t there a national program like this?
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While Congress has not passed legislation for a nationwide program, several states, including Connecticut, are establishing their own retirement savings programs to help workers now.
- Is MyCTSavings the same as an employer retirement plan?
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Not at all. Connecticut employers are mandated by State law to facilitate this State-sponsored savings program for employees when the employer does not offer its own retirement plan.
- Where can I find information about investments, fees, risks, and other program details?
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The information you want is detailed in our Program Description.
- What benefits does the program offer and why was it implemented?
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An estimated 600,000 employees in Connecticut don’t have access to a qualified retirement savings plan at work. The Connecticut Legislature passed a law that created MyCTSavings to make it easier for more workers to save for their retirement. The program specifically aims to lower the barriers of participating by using automatic enrollment and allows employees to save easily through payroll contributions to a Roth IRA.
- Does the program provide information and consumer protections to participants?
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Yes, MyCTSavings helps ensure that employees have more choices, more information, and easier access to retirement savings accounts. Consumer protections are included in the program and may be enforced by appropriate State agencies.
- Can the State use money from this program to fund other programs?
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No. The money is yours, and only you can access your savings. Your assets are remitted directly to MyCTSavings on your behalf and are credited directly to your IRA account. The State cannot access your account for other purposes and your account is not tied to any other retirement plans offered by the State.
- What was the legislation that created the MyCTSavings program?
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In 2016, the Connecticut Legislature enacted Public Act 16-29, which created the Connecticut Retirement Security Authority – now called the Connecticut Retirement Security Program (CRSP) and housed in the Office of the State Comptroller – which is responsible for creating MyCTSavings.
- Do I have to work for a certain amount of time in order to participate?
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The enrollment process takes 60 days. If you work for an employer for fewer than 120 days, you won’t be enrolled. But there is no mandatory waiting period.
- What if there are only a few employees at my workplace?
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Any company with five or more employees must facilitate the MyCTSavings program. If your employer is too small to meet the registration requirements, you can also open and contribute to your own retirement account with MyCTSavings.