Public Comments Sought on Feasibility of State-Sponsored Retirement Plan for Private Sector Employees

David Franklin

The Connecticut Retirement Security Board (CRSB) has issued a request for public comment and information regarding the feasibility of a state-sponsored retirement plan for private sector employees.

The CRSB was created this year by Public Act 14-217.  The Board’s mandate is to conduct a market feasibility study on the implementation of a public retirement plan for private sector employees currently without access to an employer-sponsored retirement plan.  AARP supports the creation of such a plan and is helping to inform the work of the Board.  The Board is charged to report its findings by January 1, 2016 and to develop a comprehensive proposal for implementation of such a plan by April 1, 2016.

The CRSB’s market feasibility study will examine the goals and design features of the plan, including likely participation rates, contribution rates, rate of account closures and rollovers, ability to provide employers with a payroll deposit system for remitting contributions from employees, funding options for implementation of the plan and likely insurance costs.  It will also examine whatever legal compliance is necessary to ensure that the individual retirement accounts qualify for the favorable federal income tax treatment ordinarily accorded to individual retirement accounts under the Internal Revenue Code.

The goals and design features would include increasing access and enrollment in quality retirement plans without incurring debts or liabilities to the state; a reduced need for public assistance; and transparency and accountability in the management and oversight of the retirement funds.

Written public comments will be accepted until November 3, 2014 and will be followed by a public hearing on November 19, 2014 at 4:00 p.m. at a location to be determined.

More details about the request for public comment, including how and where to submit comments, are available on the CRSB’s website.

For more information about AARP's position and support for "work and save" retirement plans, click here.

See also: Help Connecticut Residents Save with Confidence