Human Resources News & Trends from HRCG

MyCTSavings: The CT Retirement Plan Mandate

Written by The Human Resource Consulting Group | Mar 16, 2026 2:45:00 PM

NOTE: The initial MyCTSavings program deadline ended in August 2023, after it was extended by 5 months. All qualified businesses must now be registered under the program.

Are you a Connecticut business owner with 5 or more employees and do not currently have a retirement plan for your employees in place? If so, then pay attention because MyCTSavings, a Connecticut retirement program sponsored by the State of Connecticut’s Retirement Security Authority, is mandatory, requiring you to register for the program 

What is the MyCTSavings Retirement Plan?

MyCTSavings is a state-sponsored retirement savings program created to support Connecticut employees in saving and planning for a financially secure future.

Before the launch of the MyCTSaving program, over 550,000 private-sector employees had no employer-sponsored retirement savings plan in place. To combat the gap in retirement planning, the program MANDATES certain Connecticut employers without employer-sponsored retirement plans to offer enrollment into MyCTSavings.

Employers that do offer their own retirement plan options, you may submit an exemption for the program through the MyCTSavings website.

Who is MyCTSavings Mandatory for?

MyCTSavings is mandatory for Connecticut employers who meet the following criteria:

  • Have 5 or more employees
  • Paid 5 or more employees $5,000 or more in taxable wages in the previous calendar year
  • Do not currently provide a qualified, employer-sponsored retirement savings plan

Who is Exempt from MyCTSavings?

Generally, employers that do not fulfill the requirements above for mandatory enrollment in the program are exempt. To clarify, however, employers can be eligible for exemption from MyCTSavings if they:

  • Already provide a qualified, employer-sponsored retirement savings plan
  • Were not in existence during the current and preceding calendar years
  • Employ only individuals whose services are excluded under the unemployment compensation law

Are There Legal Consequences for Not Complying?

Yes, the program is MANDATORY for qualifying businesses and will be monitored for business compliance; penalties will be assessed as warranted.

Effective January 1, 2026, employers found to not have adopted a private retirement plan for their employees, nor have registered for the MyCTSavings program, may see fines ranging from $500 to $1,500 annually, depending on the number of employees. Notifications are sent to eligible employers who have not registered for the program before fines are imposed.

Important to note that once an employee is hired, they have 30 days to opt in or out. If the employer does not inform the employee or the employee does not respond, they are automatically enrolled at the default contribution level of 5%.

Registration Deadline for MyCTSavings

The original deadline for MyCTSavings registration was rolled out in waves, beginning with larger employers first, with March 30, 2023, being the original deadline for all businesses. The deadline was extended to August 31, 2023, for the remaining eligible employers to register.

Below is the original schedule for the CT retirement plan mandate:

  Wave 1 Wave 2 Wave 3
Number Of Employees 100+ 26 to 99 5 to 25
Registration Opens 4/1/2022 4/1/2022 4/1/2022
Registration Closes 6/30/2022 10/31/2022 3/30/2023


Newly eligible businesses are required to register for MyCTSavings by the deadline of August 31 of each year

How Much Does MyCTSavings Cost?

MyCTSavings does not require any employer fees, as employers cannot make contributions to the program. 

 

Can MyCTSavings Program Replace 401(k)s?

No, the purpose of this program is not to substitute or compete with 401(k)s or other qualified retirement plans.

 

What CT Employees Should Know

Who is Eligible?

Connecticut employees are eligible for the MyCTSavings program if they meet the following requirements:

  • Employees are at least 19 years old
  • Employees must be scheduled to work more than 120 days to be enrolled
  • Employees perform work within Connecticut
  • Business owners and shareholders are eligible to partake

 If an employee is an H-2A Visa Holder, they will be eligible if: 

  • They were employed for over 120 days
  • The program is able to verify their information

Are There Fees?

There are no fees in the Cash Preservation fund; however, there are a few other fees employees should be aware of and informed of:

 

  • There is an annual asset-based fee paid as a percentage of the money in your account.
  • The fee for each investment option you choose is approximately 0.23% of its value per year ($0.23 for every $100 saved), which includes the investment management fee for underlying funds.
  • Administration fees are $26 annually (which is charged quarterly at $6.50 each quarter).

Get Help Managing MyCTSavings Compliance

If your Connecticut business fits the eligibility requirements, you MUST be enrolled in MyCTSavings unless you register your business as exempt.

 

If you find yourself having questions or unable to answer employee questions promptly, such as:


  • Are employee contributions protected?
  • Does the program have income limitations?
  • How much should I be contributing?
  • Does this impact SNAP or TANF benefits?

No worries, our experts have your back! As a Connecticut HR Consulting service provider, we are always ready to have a conversation about ensuring compliance for your company and answering all employee inquiries. Contact us with your questions concerning the new MyCTSavings program, and we'll help you ensure compliance.