will require all small businesses with five or more employees that do not offer a qualified retirement plan to facilitate participation in a new state run retirement program. This bill will increase the cost of doing business by placing another administrative mandate on certain small employers. While various states have considered similar legislation, none have actually implemented such a program.
Under Senate Bill 249, employers of five or more employees, not covered by a workplace retirement plan, would be burdened by various mandatory administrative and recordkeeping duties relating to the plan. Employees are to be automatically enrolled in the plan, which requires employers to withhold and submit to the state between two and five percent of their employees’ wages, unless an employee chooses to opt-out of the plan on a periodic basis.
Along with administrative duties, there would also be the corresponding costs of payroll withholding for small employers. This bill also creates potential liability for state taxpayers by promising a guaranteed rate of return for participants of this new retirement plan.
This is unnecessary legislation that adds yet another inconvenient mandate to both businesses and their employees in Connecticut. Additionally, this bill sets up a government entity that will compete directly with many small businesses that make a living by offering retirement and financial services and advice.
Small business owners provide a direct benefit to the economy. Entrepreneurs risk their capital and other resources to start and grow businesses and provide jobs to the people of Connecticut. Senate Bill 249 undermines this effort and is attack on all businesses throughout our great state. We are asking that you contact your legislators today and urge them to oppose SB-249, to make sure another hurdle is not set on Connecticut’s small business owners and their employees.
NFIB has made it fast and easy for you to communicate your message to your lawmakers. Using our Legislative Action Center, you can send an e-mail with just the click of your mouse. NFIB has provided talking points to help you craft your message. Be sure to include information about your business and how this anti-business bill may impact you and your employees. We encourage you to personalize the language we provided to relate how this harmful proposal would impact your business.