OLR Bill Analysis

sSB 652

AN ACT CONCERNING SMALL BUSINESS RETIREMENT PLANS.

SUMMARY:

This bill requires the state comptroller to establish a tax-qualified defined contribution retirement program to provide retirement investment plans, including 401(k) plans, to (1) self-employed individuals, (2) businesses with 100 or fewer employees, and (3) certain nonprofit organizations. In administering the plan, the comptroller must seek to minimize costs by helping small employers and individuals purchase retirement savings plans, arrangements, and investments through economies of scale, standardization, and other measures.

The bill requires the comptroller to (1) contract with a third-party administrator to manage the plan or plans she creates and (2) recover from program assets the expenses incurred to initiate, operate, and administer the program.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Commerce Committee

Joint Favorable Change of Reference

Yea

14

Nay

5

(03/13/2008)

Appropriations Committee

Joint Favorable Substitute

Yea

32

Nay

21

(03/28/2008)