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 the definition in 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 adhere to 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 time frame.

The bill further enhances the responsibilities and powers of the Comptroller, who is designated as the program administrator. The Comptroller is authorized to receive and invest funds, contract with financial institutions, and charge fees to participants to cover program costs. A grievance process for participants is established, along with the implementation of specific provisions from the Internal Revenue Code regarding retirement savings vehicles. The bill also repeals certain sections of current law, replacing them with new language that clarifies investment options and outlines penalties for noncompliant employers. Key changes include a structured notification process for noncompliant employers and the provision of age-appropriate investment options for participants, ultimately aiming to improve the management and compliance of retirement programs in Connecticut.

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