State officials are seeking public comment regarding the feasibility of a state-sponsored retirement plan for all private sector employees.
State Comptroller Kevin Lembo and State Treasurer Denise Nappier, who co-chair the Connecticut Retirement Security Board created this year to come up with a plan, are looking for public comment on a market feasibility study that is due to the legislature by Jan. 1, 2016.
The market feasibility study will include a market analysis, recommend a plan design based on the results of such market analysis, and an assessment of the financial feasibility based on both the market analysis and recommended plan design. The state set aside about $400,000 in the most recent state budget for the study.
Lembo and Nappier said they are requesting written comment in order to help the board with its market feasibility study.
“This concept – to create a public retirement solution for private sector employees – can only be successful if everyone has a voice in this research and planning process,” Lembo said. “Retirement insecurity impacts every household and every sector, whether you’re an employee of a small business, big business or in government, so we want everyone at the table.”
The 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 like individual retirement accounts under the Internal Revenue Code.
No other state, aside from California, has attempted to create a state-sponsored retirement account for private sector employees.
Written public comments are due Nov. 3, and will be followed by a public hearing on Nov. 19 at a location to be determined at which the public is invited to participate.
More details about the request for public comment, including how and where to submit comments, are available on the CRSB’s website at www.osc.ct.gov/crsb/index.html.