Substitute Senate Bill No. 1221 proposes significant amendments to the Connecticut Retirement Security Program, set to take effect on July 1, 2025. The bill repeals Section 31-416 and introduces new definitions, including "Consumer" and "Personal care attendant," to align with existing statutes. It modifies the definition of "Contribution level" to ensure that participants enrolled on or after July 1, 2025, adhere to the Internal Revenue Code's provisions for default contribution levels. Additionally, the definition of "Covered employee" is expanded to include personal care attendants under specific conditions starting July 1, 2026. The bill also clarifies the definition of "Qualified employer," now including consumers of personal care attendants under state-funded programs while excluding certain government entities.

Moreover, the bill establishes the Connecticut Retirement Security Program under the administration of the Comptroller, who will set criteria for retirement investment choices and enforce compliance among employers. The enforcement mechanism is modified to allow the Comptroller to issue notices of noncompliance and impose financial penalties based on employer size, ranging from $500 to $1,500. The bill mandates that consumers employing personal care assistants automatically enroll them in the program and withhold contributions from their compensation. It also aligns the default contribution levels with federal minimum rates and introduces a new compliance framework, replacing previous legal action provisions with a notice requirement and civil penalties for noncompliance.

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