Tag: mandatory retirement program

Connecticut Launches Mandatory Retirement Program for Private-Sector Employees After several years of anticipation, the Connecticut Retirement Security Authority (CRSA) has released a state retirement plan that will potentially affect as many as 600,000 in the private sector who do not have access to employer-sponsored plans. Many of the state's employers will be required to take action under this new program. Learn More For a bit of background, in 2016, Connecticut's lawmakers enacted legislation creating the Connecticut Retirement Security Authority in order to help ensure adequate retirement savings among the state's workforce. The CRSA was tasked with creating a public savings program for private-sector employees within the state. This falls in line with similar legislation passed in many states across the country. However, Connecticut is one of the first to implement a state-sponsored retirement program so far. This new program introduced by the CRSA is MyCTSavings. Under this plan, private employers of five or more employees who have been paid greater than $5,000 in a calendar year will be required to participate unless they already offer a qualifying retirement savings plan. Qualifying plans include "a plan qualified under Internal Revenue Code sections 401(a), a qualified annuity plan under section 403(a), a tax-sheltered annuity plan under section 403(b), a Simplified Employee Pension plan under section 408(k), a SIMPLE IRA plan under section 408(p), or a governmental deferred compensation plan under section 457(b). The program will be introduced over a series of three waves with different registration deadlines. Which wave an employer will belong to is determined by the number of employees. Employers can determine which wave they belong to on the MyCTSavings FAQ page. The program officially opened starting April 1st, and employers are free to register at any time before their application deadline. MyCTSavings will function like a Roth IRA, which means employees may contribute a maximum of $6,000 annually or $7,000 if they are 50 years of age or older. Employers are required to participate in the program; however, they will not contribute any funds to the program. Instead, employers will solely be required to distribute information provided by the CRSA and remit payroll deductions. Qualified employees must be enrolled in the program within 60 days of distribution of the CRSA-provided information unless the employee takes action to opt out. In order to qualify, an employee must be 19 years of age or older, perform work within the state of Connecticut, and be employed with the employer for at least 120 days. Employers can register with the program or for an exemption at the MyCTSavings website. Discover everything you need to know on fair chance hiring with our free guide: Adverse Action Notice Protocols in Compliance With FCRA Sources

Tag: mandatory retirement program

Connecticut Launches Mandatory Retirement Program for Private-Sector Employees

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