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600K Connecticut employees will be enrolled in a retirement plan if they lack options at work

Connecticut Gov. Ned Lamont speaks at Fairfield University.
Molly Ingram
WSHU Public Radio
Connecticut Gov. Ned Lamont speaks at Fairfield University.

A new retirement savings option is available in Connecticut for employees who are not offered a plan through their employer. Over 600,000 private-sector workers will automatically be enrolled for the service, My CT Savings.

Governor Ned Lamont said the program will be targeted at small businesses.

“This exchange is just amazing for small entrepreneurs and startups, which is where all the job creation is,” Lamont said.

State Comptroller Natalie Braswell said many of the employees who will benefit work for small businesses and may never have had access to retirement savings.

“Everyone deserves a financially secure retirement, and this will likely be a key tool to help individuals save for their golden years,” Braswell said.

The program is cost-free for employers and taxpayers. The money is collected from their paychecks into the retirement account and will follow employees wherever they go if they change jobs.

The account is a Roth IRA, which allows employees to set aside pre-taxed income to be withdrawn tax-free after age 59-and-a-half.

Molly is a reporter covering Connecticut. She also produces Long Story Short, a podcast exploring public policy issues across Connecticut.