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Pulling back the curtains on wage-theft enforcement in MN; Trump's latest attack is on RFK, Jr; NM LGBTQ+ equality group endorses 2024 'Rock Star' candidates; Michigan's youth justice reforms: Expanded diversion, no fees.

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Transportation Secretary Pete Buttigieg says rebuilding Baltimore's Key Bridge will be challenging and expensive. An Alabama Democrat flips a state legislature seat and former Connecticut senator Joe Lieberman dies at 82.

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Historic wildfires could create housing and health issues for rural Texans, a Kentucky program helps prison parolees start a new life, and descendants of Nicodemus, Kansas celebrate the Black settlers who journeyed across the 1870s plains seeking self-governance.

New CT Program Makes Saving for Retirement More Accessible

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Monday, January 10, 2022   

Half of all households in Connecticut are at risk of not being able to pay for everyday expenses in retirement. A new state-run savings program will help private-sector employers offer retirement benefits to their workers.

MyCTSavings was passed into law in 2016, known then as the Connecticut Retirement Security Program. Through MyCTSavings, employees are enrolled in automatic payroll deductions that go into a Roth Individual Retirement Account or IRA.

John Erlingheuser - associate state director for advocacy and community outreach with AARP Connecticut - said the program can be helpful long-term for residents unprepared for retirement, and make businesses more competitive in the employment market.

"I know businesses are eager to be able to provide an opportunity for individuals to save at no cost to them," said Erlingheuser. "So this will help level the playing field for those businesses that can't afford to offer an opportunity because the burden is taken on by a small fee assessed to the individual accounts."

The program, run by the Connecticut Retirement Security Authority, started as a pilot in 2021 and will roll out in phases this year with larger companies first. Other states with similar programs include California, Illinois and Oregon, which have high satisfaction rates from both employers and workers.

In Connecticut, Social Security benefits for those 65 and older are only about $21,000 a year, while families on average are spending $26,000 a year on basic needs. Erlingheuser said being able to save for retirement through a paycheck increases the chances someone will do so in the first place.

"The way MyCTSavings is constructed, they're automatically enrolled with an opt-out option," said Erlingheuser. "But when they're automatically enrolled they're actually 20 times more likely to save for retirement. So this is really a great way for individuals to create that nest egg for retirement."

Businesses with five or more employees in the state that do not offer retirement plans through payroll will eventually be required to enroll in MyCTSavings.



Disclosure: AARP Connecticut contributes to our fund for reporting on Budget Policy & Priorities, Health Issues, Hunger/Food/Nutrition, Senior Issues. If you would like to help support news in the public interest, click here.


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