by Jennifer Swift
Feb 12, 2014
11:52 AMConnecticut Politics
Coalition Wants State to Create Public Retirement Fund
A coalition is pushing for the state's legislature to pass "retirement for all" legislation to create a state-run retirement fund for those without an employer-sponsored retirement plan.
Sen. Martin Looney is again sponsoring this legislation, the same as what he proposed last year. The legislation would allow employees to put money into a trust fund held by the state and administered by the state treasurer. Costs would be paid by participants, not taxpayers.
"The legislation is aimed at the 740,000 Connecticut workers who are not currently participating in an employer-sponsored retirement plan, according to the bill’s backers. The bill’s backers say that group represents about 40% of the state’s labor force.
If enacted, the bill would authorize the creation of the Connecticut Retirement Security Trust Fund, which would require private-sector employers with five or more employees that do not currently offer a retirement plan to automatically deduct contributions from employees’ paychecks and funnel them into an IRA through direct payroll deposits."Coalition Wants State to Create Public Retirement Fund