CT SB00136

Default contribution rate increases from 3% to 5% of taxable wages for participants enrolled on or after July 1, 2024, with the Comptroller authorized to establish annual automatic contribution increases of up to 1% annually, capped at 10% total

Employment eligibility period for covered employees reduced from 120 days to 30 days before enrollment in the retirement program

New enforcement mechanism allows the Comptroller to assess civil penalties against noncompliant employers: up to $500 for employers with 5-24 employees, up to $1,000 for 25-99 employees, and up to $1,500 for 100+ employees after 90 days of noncompliance following a final notice

Qualified employers receive explicit liability protection from employee participation decisions, investment decisions, investment returns, program design, and benefits paid, and are not considered fiduciaries over the program

New 60-day capital preservation investment option allows initial contributions to be held in money market or short-term funds before automatic transfer to age-appropriate target date funds if no participant selection is made