Connecticut Legislature Approves State-run Plan for Private Sector
The Connecticut legislature passed legislation May 8 that would establish a board to study, and then implement, a public retirement plan for private sector employers. The measure awaits the signature of Gov. Dannel Malloy (D); ASPPA sent the governor a letter supporting the bill and urging him to sign it.
The legislature's action followed the passage of the Connecticut state budget during the weekend of May 3 - 4 that allocates $400,000 in state money to fund such a study in fiscal year 2015. After the completion of the study, the board — dubbed the Connecticut Retirement Security Board (CRSB) — is to develop and submit a comprehensive proposal for the implementation of the plan to the governor and the Connecticut legislature by April 2016.
If the bill to create the CRSB becomes law, Connecticut will become the second state, after California, to create a framework for a comprehensive retirement savings program to make workplace savings through payroll deduction available to most private sector workers in the state. But unlike California, Connecticut funded the feasibility study with state money and has set clear deadlines for the implementation of the plan.
A key design feature in the proposal would ensure mandatory participation in the public retirement plan by private employers with five or more employees and that do not offer an employer-sponsored retirement plan to them. The proposal also would establish a clearinghouse that would assist employers with identifying vendors of private retirement plan products, in order to allow employers to satisfy the requirement in lieu of participating in the public retirement plan.
Andrew Remo is ASPPA's Congressional Affairs Manager.