AARP Connecticut applauds the progress towards implementing the Connecticut Retirement Security Program (Public Act 16-29) that was signed into law in 2016 and is on-track to begin operation in 2018.
The authority, which has oversight of the Connecticut retirement security plan that will begin operation in 2018, formerly posted the opening of an Executive Director position on Friday, Jan. 19. The plan requires all Connecticut businesses of five or more employees with no pension or 401 K plan to allow employees to save for retirement through payroll deductions into private IRA accounts. It will be voluntary for employees, who will be automatically enrolled but have the ability to opt out. In Connecticut there are approximately 600,000 people who will be helped in saving for retirement with this new law.
The Executive Director of the Connecticut Retirement Security Authority Board will establish and manage the new quasi-public private institution that will be charged with selecting private saving plan choices for employees and overseeing compliance with the law. A job description and where to send a resume is available online.
“Connecticut is on the path to joining other states, such as Oregon and Maryland, in implementing a program for people to save for retirement at work,” said John Erlingheuser, AARP Connecticut director of advocacy and outreach. “Connecticut’s leadership role in providing 600,000 people without a workplace retirement savings plan an opportunity to build a secure financial future will help cut into the huge gap between what exists for retirement and what is needed, as well as reduce the reliance on state-funded social safety net services in the future.”
According the AARP Public Policy Institute finds that between 2018-2032 Connecticut could save over $90 million if lower income retires save enough to increase their retirement income by only $1000 a year.
There is a $7 trillion retirement savings deficit among older Americans in the United States, according to data from The Center for Retirement Research at Boston College. Further, AARP Public Policy Institute studies show that people are 15 times more likely to save for retirement if they can do so through a payroll deduction program at work.