Substitute Senate Bill No. 1221, also known as Public Act No. 25-30, amends the Connecticut Retirement Security Program by updating definitions and eligibility criteria for participants and employers. The bill introduces the term "Consumer," aligning it with section 17b-706, and expands the definition of "Covered employee" to include personal care attendants starting July 1, 2026, who meet specific employment criteria. Additionally, the contribution level for participants who do not make an affirmative election will now follow the provisions of Section 414A(b)(3)(A) of the Internal Revenue Code, effective July 1, 2025. The definition of "Qualified employer" is also redefined to include consumers receiving services from personal care attendants under state-funded programs, while excluding certain government entities and employers not in existence during the required timeframes.

The bill enhances the responsibilities of the Comptroller, who is designated as the program administrator with the authority to establish retirement investment choices and set a cap on annual fees. Key insertions include the requirement for the Comptroller to invest participants' accounts in age-appropriate target date funds and provide retirement savings vehicles for those receiving federal Saver's Match contributions. The bill also introduces a new administrative process for grievances and appeals, modifies enforcement mechanisms for noncompliant employers, and repeals certain existing legal language to ensure a structured approach to compliance. Civil penalties for noncompliance are now based on the size of the employer's workforce, replacing the previous system that allowed civil actions by employees or the Labor Commissioner.

Statutes affected:
Raised Bill: 31-416, 31-423
LAB Joint Favorable: 31-416, 31-423
File No. 179: 31-416, 31-423
Public Act No. 25-30: 31-416, 31-423