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COMPTROLLER LEMBO, TREASURER NAPPIER REQUEST PUBLIC COMMENT ON PUBLIC RETIREMENT PLAN FOR PRIVATE SECTOR EMPLOYEESFriday, October 10, 2014
HARTFORD - State Comptroller Kevin Lembo and State Treasurer Denise L. Nappier,
as co-chairs of the Connecticut Retirement Security Board (CRSB), today issued
requests for public comment and information regarding the feasibility of a
state-sponsored retirement plan for private sector employees.The CRSB, created this year by Public Act 14-217, was mandated by the legislature to conduct a market feasibility study and to report its findings by Jan. 1, 2016. Thereafter, the CRSB must develop a comprehensive proposal for implementing such a plan by April 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.
Lembo and Nappier said they are requesting written comment in order to help the CRSB 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."
Treasurer Nappier added, "Retirement security, and the viability of strategies to provide it, has an enormous impact on our economy and society. As State Treasurer, I support any effort to encourage savings, and believe that the Board's study will foster a constructive dialogue around the options available to spur retirement savings. Public input is an essential element of our work."
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 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 osc.ct.gov/crsb.
In addition to the request for public comment, the CRSB is seeking information from qualified vendors to conduct general consulting, market analysis, program design, and financial feasibility consulting services. Interested vendors are asked to provide information regarding their qualifications, in addition to their availability and interest in providing the requisite services.
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