Connecticut legislators have approved a study that will examine the feasibility of creating of a public retirement plan for private sector workers in the state who dont have access to an employer-sponsored plan.
Effective July 1, the Connecticut Retirement Security Board will conduct a market feasibility study that is expected to take two years. The board is tasked with proposing how to best implement the state-level public individual retirement account plan.
The board will be chaired by state treasurer Denise L. Nappier and state comptroller Kevin Lembo. They are expected to return to the Connecticut General Assembly in 2016 to lay out their plans.
Retirement security, and the viability of strategies to provide it, have an enormous impact on our economy and society, Nappier says in a statement to EBN. As State Treasurer, I support any effort to encourage savings, and believe that the study endorsed by the Connecticut General Assembly will foster a constructive dialogue around the options available to spur retirement savings. Beyond that, I have no preconceived notions over how that dialogue will take shape.
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Legislators placed the retirement plans language in the states 2014 fiscal year budget, which was approved by lawmakers on May 7 the last day of their legislative session. Workers at any private employer with five or more employees will be eligible to participate.
Previously, Senate Bill 249, heralded as an act to promote savings, picked up some initial steam but fizzled out at the end of April. That legislative proposal called for a state-administered retirement savings plan for low-income private sector workers to be funded through payroll deductions.
