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, it modifies the contribution level for participants who do not make an affirmative election to comply with 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, allowing for the receipt and investment of funds in accordance with updated regulations, contracting with financial institutions, and charging fees to participants to cover program costs. It establishes a grievance process for participants and mandates adherence to specific provisions from the Internal Revenue Code regarding retirement savings vehicles. Key changes include the introduction of age-appropriate target date funds for participant accounts and a revised enforcement mechanism for noncompliant employers, transitioning from civil action to a notice system with potential civil penalties. The Comptroller is empowered to adopt regulations to implement these provisions, ultimately aiming to improve the structure and compliance of the retirement program while ensuring participants have access to suitable investment options.

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