Connecticut Senate Bill SB00249

Connecticut 2014 Regular Session

• Introduced: 2/21/14
• Refer: 2/21/14
• Report Pass: 3/18/14
• Refer: 3/27/14
• Report Pass: 4/2/14
• Refer: 4/24/14
• Report Pass: 4/28/14
• Report Pass: 4/29/14

Caption

An Act Promoting Retirement Savings.

Impact

The implementation of SB00249 is intended to positively affect the retirement security landscape in Connecticut by offering greater retirement savings options for employees, particularly those working for small businesses that may not have been able to offer retirement plans previously. Qualified employers, defined as those with five or more employees, will have the opportunity to facilitate employee participation in retirement savings plans, thereby potentially reducing the reliance on public assistance in retirement. The Trust Fund is designed to be self-sustaining, thus shielding state taxpayers from liability regarding retirement account balances.

Summary

SB00249 is an act designed to promote retirement savings among private sector employees in Connecticut. This bill establishes the Connecticut Retirement Security Trust Fund, which aims to enhance access to quality retirement plans by offering a public retirement plan through eligible employers. The plan is structured to provide individual retirement accounts (IRAs) that can be funded through payroll deductions, making retirement savings easily accessible to employees who may not have adequate plans available through their workplaces. The bill emphasizes a streamlined enrollment process and low administrative costs to encourage participation among employees and employers alike.

Sentiment

The sentiment surrounding SB00249 is largely positive among proponents who see it as a necessary step to ensure employees have the financial security needed for retirement. Legislators advocating for the bill emphasize the importance of making retirement savings accessible to all workers, particularly those who are lower-income or lack other retirement options. However, there are concerns expressed by some stakeholders regarding the administrative burden this could place on small businesses that may struggle with the additional requirements of managing retirement plans.

Contention

Despite the generally favorable view of SB00249, there are notable points of contention, particularly regarding the level of responsibility placed on employers. Some critics argue that while the bill aims to promote retirement savings, it could inadvertently lead to challenges for small business owners who may be unprepared to manage the complexities involved in offering a public retirement plan. Additionally, there are discussions around the potential implications for existing retirement markets and how this new trust fund may compete with traditional retirement savings vehicles.