Comptroller Sean Scanlon, accompanied by other state and local officials, visited several businesses in West Hartford Center to encourage enrollment in the state-sponsored retirement program, MyCTSavings, before the Aug. 31 deadline.
By Bridget Bronsdon and Kaily Martinez
Connecticut businesses have just under three weeks left to enroll in MyCTSavings, the state-sponsored retirement program free for employers and voluntary for employees, said State Comptroller Sean Scanlon.
Scanlon, along with state Reps. Kate Farrar, Jillian Gilchrest, Town Council members, town staff, and several Chamber of Commerce representatives visited four businesses in West Hartford Center on Monday to spread awareness and discuss the program.
“Half the businesses in Connecticut don’t offer their employees retirement, and it’s usually not because they don’t want to, it’s because they can’t afford to and this is a way that they can do that for free,” Scanlon said.
While the program is growing rapidly with 6,700 businesses across the state signed up so far, there are still numerous businesses not enrolled, Lux Bond & Green being one.
“The goal is very simple, it’s just to try to help businesses help their employees save for retirement at no cost to the business,” said Scanlon to company President and CEO, John Green.
Sean Scanlon met other state and local officals outside of Lux Bond & Green before heading inside to encourage enrolling in the state retirement program. August 5, 2024. Photo Credit: Kaily Martinez
Following a visit to Lux Bond & Green and Cafe Sofia, the group discussed the benefits of the program at Zohara with Scott Miller, co-owner of the Doro Restaurant Group.
While each meeting was short, business owners were well informed on MyCTSavings and the benefits of enrolling in it. August 5, 2024. Photo Credit: Kaily Martinez
Scanlon explained how the program can offer a “leg up” for larger companies and hospitality groups because employers simply register and add the program to employees’ payroll. From there, the employee is in control with the ability to opt out or re-enroll at any time.
While employees pay a nominal fee, the program is completely cost-free for businesses. The program also allows businesses to offer a Roth IRA to its employees, Scanlon said.
Sean Scanlon visited four businesses to inform them about MyCTSavings. August 5, 2024. Photo Credit: Kaily Martinez
As for the restaurant industry, it has the largest opportunity for growth in the program. “We’re working with the restaurant association, we’re trying to talk to different restaurant owners about the importance of this and it’s hard, a lot of people who work there are either younger, or they’re part-time, or they’re maybe not thinking of doing this for a career, but the message we need to get out there is the more you save now, regardless of what you want to do in your life, the better you’re going to be down the road,” Scanlon said.
Sean Scanlon spoke with Alex MacDonald, owner of Luna Pizza about the benefits of MyCTSavings. August 5, 2024. Photo Credit: Kaily Martinez
Luna Pizza was the final stop on the West Hartford business walk. Scanlon sat down to talk with Alex MacDonald, owner of Luna Pizza, about the benefits of participating in the MyCTSavings program. As Scanlon discussed the benefits of the retirement savings program, MacDonald agreed it could help, “Something like this could definitely help with staff retention.”
According to an article by Chase for Business, in a survey, 85% of employees said that retirement benefits are “an important factor when deciding to stay with their current employer or consider looking for a new job.”
Additionally, in an article published by Human Interest by Trenton Reed, in the United States, only three states have made no recent efforts to introduce legislation, 19 states have passed laws or have pending legislation and 10 states have active laws.
If businesses enroll in the MyCTSavings program, they could see a lower turnover rate over time because fewer employees would have to worry about their retirement savings or plans.
“If this existed when I was their age, I would be able to retire now,” MacDonald said.
Scanlon happily went into the details of the program’s history after MacDonald questioned why it took so long to create a program like this. In 2016, Public Act 16-29 was enacted, establishing the Connecticut Retirement Security Program.
However, Scanlon admitted it took a long time to get the program started since he was elected in 2022. Yet, in January 2023, the program officially began, Scanlon said. Since then, it has been growing.
While numerous businesses across the state have enrolled and some employers might be hesitant to enroll, the deadline of Aug. 31 is quickly approaching. Until then, it’s good for businesses and their employees to review the options they have regarding MyCTSavings.
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