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.

Is investing in MyCTSavings the same as putting money in a bank?: No, there are big differences. Banks offer checking and savings accounts that typically pay less interest and might offer other savings and investment products. MyCTSavings helps you save through payroll contributions to your Roth IRA and allows you to invest in various targeted, market-based investments.
Could I lose my money?: All investing involves some risk, including the risk of losing the money you invest. MyCTSavings lets you choose investments based on your age, the length of time to your retirement, and your risk tolerance. There are other factors to consider. If you don’t have sufficient retirement income you may outlive your savings, and inflation can reduce the value of traditional savings accounts.
Are my investments guaranteed to earn?: All investing involves some risk, and there is no guarantee of earnings. The MyCTSavings program offers a range of investment types to help you choose options that balance different levels of risk. Usually, a Cash Preservation Portfolio will have lower risk and potentially lower rates of return. When considering a fund’s past performance, it is important to remember that past performance is not a guarantee of future results.
What about market volatility?: Investing for your retirement means setting a long-term goal to grow your savings. Investments will fluctuate — there’s no way to time your investment activity only to benefit from positive gains. MyCTSavings offers investment options with various risk levels. Choose the one(s) that best fit your risk tolerance.
What about expense ratios and fees?: Each investment option for MyCTSavings is a portfolio that consists of various mutual funds, each with its own underlying expenses, otherwise known as an expense ratio. The expense ratios and other information about the underlying portfolios can be found at the following links:
Fidelity® Total Market Index Fund
Schwab Total Stock Market Index Fund®
Fidelity® International Index Fund
Fidelity® Emerging Markets Index Fund
Fidelity® U.S. Bond Index Fund
Schwab U.S. Aggregate Bond Index Fund
Fidelity® Long-Term Treasury Bond Index Fund
Schwab Treasury Inflation Protected Securities Index Fund
Vanguard Emerging Markets Bond Fund Admiral Shares
Vanguard High-Yield Corporate Fund
Vanguard Cash Reserves Federal Money Market Fund
In addition to the expense ratios, there are also Asset-Based fees and Annual Account fees for the Program, regardless of which investment option you choose. These fees and expense ratios go towards managing and running the MyCTSavings program and the underlying investment portfolios, respectively.
What if I don’t select investments for my account?: Program participants who are enrolled using the default savings choices and who do not make any investment selections will have their funds invested automatically in a money market fund until 60 days have passed after an initial contribution has been made. Then, after 60 days, all funds will be exchanged and contributed automatically to an age-appropriate Target Retirement Portfolio.
How can I learn more about investment options?: You can get general information about the portfolios here, or talk to a financial advisor about your investment options.
Who is responsible for choosing the available investment options?: The State Comptroller, in consultation with the Connecticut Retirement Security Program Advisory Board, whose mission is to “promote and enhance retirement savings for private sector employees in the State,” is responsible for making decisions about the investment options available in the program.
Which company is administering the program?: The Connecticut Retirement Security Program has selected Vestwell State Savings, LLC, dba Sumday Administration, as the program’s new administrator. Sumday, a Vestwell Holdings, Inc. company, is an experienced retirement and college savings services provider and will act as the IRA trustee, manage account records, operate the website www.MyCTSavings.com, receive and process retirement contributions and distributions, and provide customer service.
What is a Target Retirement Portfolio?: A Target Retirement Portfolio is an age-based fund designed to help manage investment risk and is based on two factors: an investor’s current age and approximate estimated retirement date. This type of fund includes a mix of investments — stocks, bonds, and cash equivalents — that evolve over time to focus on growth for younger investors and to help preserve savings closer to retirement age. MyCTSavings offers a range of Target Retirement Portfolios.