The landmark Connecticut bill expected to address the future retirement challenges for private sector employees in the state has jumped its first legislative hurdle.
On March 18,
At press time, it was unclear when state legislators would next hear the proposal.
The legislative proposal to create a state-administered retirement savings plan for low-income private sector workers
Under the Connecticut Security Trust Funds plan, employers are not required to contribute to the hybrid employees retirement plan, which incorporates defined benefit and defined contribution characteristics. According to the bill, qualified employers include organizations that staff five or more persons. Excluded employees include those currently receiving retirement benefits or are employed by the federal government, state and local governments or local municipality.
According to the Retirement for All CT Coalition, a joint group that includes local unions and employee associations that are pulling for the bills passage, the plan will likely lead to cost savings for Connecticut businesses because it will allow employers to hire and retain professionals that seek retirement benefits.
Funding will be garnished from payroll deductions, but details are still being hammered out. The Connecticut bill says that the board will set a contribution level that will vary between 2% and 5% of the employees salary, based on the length of time they have contributed. Plan participants can change the level of contribution by petitioning to the board, according to the latest version of the bill.
Previously, lawmakers in
Similarly, President Obamas