HARTFORD – State Senator Cathy Osten (D-Sprague) today welcomed the latest report from the Connecticut Retirement Security Program which shows that Connecticut’s “MyCT Savings” program – launched just a year and a half ago – now has more than 18,000 personal savings accounts at nearly 5,700 state businesses totaling $9.25 million.
Sen. Osten was Vice-Chair of the Labor and Public Employees Committee when the bill that created the MyCT Savings program was approved by the committee and passed into law on a partisan basis by the General Assembly in 2016. After creating the authority and its board, establishing procedures, the IRA program, and the ban on political contributions, the program first began accepting employee contributions in April 2022.
“Most people in Connecticut are familiar with the success of our Paid Family and Medical Leave program – which paid out more than $81 million in benefits to 16,300 Connecticut workers in its first six months of its existence – and our success in reducing workers’ compensation costs for businesses, which have declined for nine straight years and have saved Connecticut businesses more than $300 million. But the MyCtSavings program is still a bit of a mystery to people, and it shouldn’t be,” Sen. Osten said.
“About a third of all employees in Connecticut do not have access to some type of savings program at work. Not everyone has the time or the interest to research private investment vehicles and make an appointment with a financial advisor. And very few of us are well-paid CEOs who are going to get a golden parachute no matter how the company does, good or bad. That’s where MyCTSavings comes into play,” Sen. Osten said. “Most of the 18,000 people in this program set aside about 3.3% of their income. They’ve saved maybe $500 so far. But the point is, they’re saving money for their future that they wouldn’t be otherwise. That’s the beauty of this very simple state program. It should be better known.”
An estimated 600,000 employees in Connecticut don’t have access to a qualified retirement savings plan at their place of work. The state legislature 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.
The program is NOT paid for by taxpayers, it does NOT require that employers contribute to the program, and it is NOT mandatory for businesses with fewer than five employees or for those that already offer a workplace-based retirement savings option. The monthly MyCTSavings program data reports can be seen at: https://osc.ct.gov/crsa/reports.html.
If your employer participates in the program, or if you’re self-employed, and you’d like to set up an account, please visit: https://mycts.