Legislation to spend $400,000 to develop a public IRA plan for all of Connecticut’s 740,000 private sector workers who lack retirement plan coverage was signed into law this week by Governor Dannel Malloy. The Democratic-controlled legislature approved the expenditure as part of the FY 2014-2015 budget last May 3.
State budget implementer H.B. 5597 establishes the Connecticut Retirement Security Board within the State Comptroller’s office. The Board, chaired by the State Treasurer and State Comptroller, will be charged with assessing the feasibility and development of a state-administered Public Retirement Plan.
The Plan is mandated to:
- Provide a guaranteed rate of return
- Offer universal access and portability
- Have low-administrative costs
- Be administered transparently
The Board will be expected to report their findings and a plan for implementation to the General Assembly by April 1, 2016. Other Board members will include the Secretary of the Office of Policy and Management, the Commissioner of the Department of Labor, employees, employers, and investment experts.
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