Connecticut Retirement Security Board Begins Monthly Meetings

Date: September 03, 2014

As the topic of state-run retirement plans for the private
sector has gained national attention lately, Connecticut has been at the
forefront of the issue. Recently, the
Connecticut Retirement Security Board convened to examine the issue, assess
specific feasibilities, and develop such a plan for the state. 

After hearing the objections of a coalition
of business groups, including representatives of large and small businesses and
insurance and financial services providers to immediate creation of a state-run
retirement plan for the private sector in Connecticut, the state legislature
instead passed a “study” provision as part of the massive last-minute budget implementer
bill. Sections 180 – 185 of Public Act
14-217 established the new Connecticut Retirement Security Board, which is
statutorily required to “conduct a market feasibility study regarding the
implementation of the public retirement plan and develop a comprehensive
proposal for the implementation of such plan.”  

The Board is co-chaired by the State Comptroller Kevin Lembo and State
Treasurer Denise Nappier, and is comprised of appointed representatives from
various perspectives, including seniors, potential plan participants, organized
labor, retirement plan management and consumer retirement planning, among
others. 

All small businesses need to be
aware that the plan contemplated by the Board would require employees at all
businesses with 5 or more employees to automatically be enrolled in and
participate in a state-run retirement plan, unless the employee regularly opts
out or the employer otherwise offers a qualified retirement plan. Employers of participating employees would
have some obligations under the plan, including administering payroll
deductions and remittances to the state-run plan. 

While the Board’s first two meetings have
been largely about discussing organization and operations, expect future Board meetings
to begin to cover more substantive details, as well as comparisons and analyses
of other state’s that are contemplating similar programs. The Board is expected to meet regularly on
the 1st Wednesday of every month, and there will typically be
opportunity for public comment. More
information about the Connecticut Retirement Security Board can be found on the
website of the Office of the State Comptroller.

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