On May 7, 2014, the Connecticut General Assembly passed a “budget implementer” bill that includes provisions to lay the groundwork for a new state-administered retirement savings plan for private-sector workers who do not have an employer-provided pension or retirement savings plan. The bill allocates $400,000 toward the establishment of a Connecticut Retirement Security Board and directs the Board to conduct a market feasibility study and create a comprehensive implementation plan for the new retirement program.
The Retirement Board, in consultation with diverse stakeholders, will study and develop a portable automatic Individual Retirement Account program to increase participation among Connecticut residents. If determined feasible, the plan would include these features:
In addition, the legislation requires that the plan will be totally separate from the state’s retirement funds, that it not be subject to ERISA, the federal private pension law, but that the plan must be in compliance with any other applicable laws, rules and regulations.
The legislation requires that all appointments to the Connecticut Retirement Security Board be made by July 31, 2014. The Board is required to report the results of the market feasibility study to the Governor and appropriate committees of the General Assembly by January 1, 2016. The Board must submit an implementation plan to the Governor and the General Assembly for final consideration by April 1, 2016.
For more information on state-administered retirement plans for private-sector workers, see this fact sheet.< Back