Connecticut Retirement Security Authority
State of Connecticut IRA program
Year enacted |
2016; amended 2019 |
Status |
Pilot began in late October 2021, and interested employers were able to register the first week of November 2021
Statewide required registrations are in three waves:
|
Employers affected |
Mandatory for employers with five or more employees that don’t provide their own qualified plan |
Type of account |
Roth IRA (default) and traditional IRA (optional) |
Automatic enrollment |
Yes |
Auto-escalation |
To be determined |
Default contribution rate |
3% |
Employer contributions |
Not permitted |
Investment options |
Target-date funds (TDFs) and seven strategic investment portfolios identified by their investment goal: cash preservation, income, income and growth, balanced, conservative growth, moderate growth, and growth
Default—Contributions are invested in the money market fund for 60 days, then they're moved to the age-appropriate TDF, if no other investment option is selected. Under the current law, 50% of a participant’s account will be invested in a lifetime income investment at normal retirement age. |
Fees |
None for employers. Employee fees consist of a program administration fee of 0.22% per annum of investment options daily net assets, an account fee of $26 per year ($6.50 per quarter), and additional fees for specified events (i.e., rollover, paper check, and paper statement). |
Websites |
myctsavings.com and state comptroller retirement security website |
Sources: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21 and the program's website. It is subject to change without notice. Please contact the state to learn more.
Learn more about the opportunity with state-facilitated retirement plans
John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker dealer for the John Hancock mutual funds. Member FINRA, SIPC.
John Hancock Retirement Plan Services LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans. John Hancock Trust Company LLC provides trust and custodial services to such plans. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York. Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.
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