Bill > SB01221

This bill makes several important changes to Connecticut's Retirement Security Program, primarily updating definitions, expanding program coverage, and modifying enforcement mechanisms. The bill expands the definition of "covered employee" to include personal care attendants starting July 1, 2026, and broadens the definition of "qualified employer" to include consumers receiving services from personal care attendants under state-funded programs. It updates the default contribution level for participants to align with federal Internal Revenue Code provisions, allowing for automatic enrollment with a standardized contribution rate if no specific election is made. The Comptroller is given additional powers, including the ability to establish investment criteria, contract with financial institutions, and implement new federal savings match provisions. The bill also introduces a structured enforcement process for employers who fail to enroll employees or transmit contributions, establishing a tiered civil penalty system based on the size of the employer, ranging from $500 to $1,500 annually for persistent non-compliance. Additionally, the bill mandates that participant accounts be invested in age-appropriate target date funds by default, with options for participants to select alternative investment vehicles, and ensures that participants who receive federal Saver's Match contributions have appropriate retirement savings vehicles available.

Labor and Employment

Labor and Public Employees Committee (Joint)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01221&which_year=2025