Legislation creating a state-run retirement-savings program serving nearly 600,000 private-sector workers in Connecticut squeaked through the State Senate and is on its way to the governor for action.
Lt. Gov. Nancy Wyman needed to break an 18-18 tie on the measure. The legislation, which aims to serve individuals who currently lack access to workplace-based retirement savings, had previously passed the House.
The bill creates a new quasi-public entity responsible for implementing a retirement-savings program through contracts with private-sector providers. The proposed program would not be mandatory for businesses that currently offer a 401k plan or other workplace-based savings option to its employees.
The Connecticut chapter of the National Federation of Independent Businesses has opposed the proposal. It said in a statement the new entity would be a cost burden to small business owners and the state would be better off allowing private investment companies to compete for retirement assets.
AARP Connecticut, which was an early advocate for the bill, said Gov. Malloy needs to sign the legislation. AARP Connecticut State Director Nora Duncan said the new entity adds no additional cost to taxpayers and leads to less reliance on state-funded social safety net services in the future.
