Public Act 16-29, enacted in 2016, created the Connecticut Retirement Security Authority (CRSA), which has been meeting monthly since August 2017. The Authority will be responsible for implementing a program to provide private-sector employees with retirement savings accounts if they current lack access to one through their employer. The list of Board members can be found here. More information about Public Act 16-29 and the Connecticut Retirement Authority can be found here.
The Authority has created six subcommittees: (1) Budget, Finance, and Audit, (2) Personnel and Support, (3) Program Design, and Investment, (4) Education and Outreach, (5) Governance and By-laws, (6) Research and Comparative Analysis. The subcommittee meeting materials, agendas, and minutes can be found here.
The Connecticut Retirement Security Board (CRSB), the predecessor study board, concluded its work and ended on July 1, 2016.
January 19, 2018 – Next Retirement Security Authority meeting scheduled.
December 15, 2017 – The Retirement Security Authority held a meeting to:
- Hear updates from the six subcommittees;
- Discuss the Executive Director position description;
- Discuss the RFP for Legal Services;
- Discuss the RFI for Program Administrator Services; and
- Hear Public Comments.
Last updated 1/4/2018.
OVERVIEW OF PROGRAM CHARACTERISTICS
|Bill Number||HB 5591: Public Act 16-29 (2016); as amended by Public Act 16-3|
|Administrative Entity||Connecticut Retirement Security Authority Board|
|Model/Account Structure||Roth IRA with a marketplace of selected vendors and products|
|Employers Covered||Qualified employers with 5 or more employees that do not currently offer a plan.|
|Employee Participation||Voluntary, opt-out|
|Employee Automatic Enrollment||Yes|
|Default Contribution Rate||3%|
|Program Funding||The Connecticut Retirement Security Authority may borrow working capital funds and other funds as may be necessary for the start-up and continuing operation of the program, as long as such funds are borrowed in the name of the Authority only. Such borrowings shall be payable solely from revenues of the Authority.|
|Implementation Timeline||This bill is effective January 1, 2017. The Board passed a motion during the meeting on September 18th to move the implementation timeline from Jan 1, 2018 to an unspecified date. The Board set March 1, 2018 as the deadline to revisit and to set a new the implementation deadline.|
SUMMARY OF 2017 ACTIVITIES TO DATE:
The Authority’s Board of Directors:
- Discussed with Michael Kreps from Groom Law Group ERISA and fiduciary responsibilities and how they relate to the implementation and governance structure of the program;
- Announced their expectation to hold a special meeting to finalize the job description for the program executive director before the next official meeting in December;
- Moved forward with developing an RFP for legal counsel to assist with drafting program documents; and
- Expect to approve a RFI on program administration and recordkeeping at the next meeting.
- A presentation from Tom Hennick regarding how the Authority should be conducted to ensure compliance with the Freedom of Information Act
- Reports and updates from the working groups: Governance and By-laws, Program Design and Investment, Budget, Audit and Finance, Research and Comparative Analysis, Personnel and Support, and Education and Outreach
- Public comments
- Created 6 work groups (1. Budget, Finance, and Audit, 2. Personnel and Support, 3. Program Design, and Investment, 4. Education and Outreach, 5. Governance and By-laws, 6. Research and Comparative Analysis);
- Passed a motion to move the implementation timeline from Jan 1, 2018 to an unspecified date but with a March 1, 2018 deadline to revisit the implementation deadline; and
- Discussed the details of beginning implementation planning working with an interim organizational consultant in the short-term before taking the step of hiring a full-time Executive Director.
August 17, 2017 – The first Board meeting was held. The Board heard presentations from Lisa Messina from OregonSaves, and from Sarah Gill from AARP. The Board also discussed the implementation of the program. A video recording of the meeting is available here. Public Act 16-29 requires that the Authority completes several action items before the program is implemented.
January 25, 2017 – A bill relating to the current state-administered retirement system was introduced, but did not advance prior to the end of the legislative session (See “View 2017 Legislative Proposal” link below).
2017 Legislative Session Dates: January 4, 2017 – June 7, 2017
Visit the official website for the Connecticut State Legislature.
Source: Georgetown University’s Center for Retirement Initiatives