Connecticut Seal

General Assembly

Amendment

 

February Session, 2008

LCO No. 4889

   
 

*SB0065204889SRO*

Offered by:

 

SEN. DEBICELLA, 21st Dist.

 

To: Subst. Senate Bill No. 652

File No. 603

Cal. No. 399

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. (NEW) (Effective from passage) (a) As used in this section:

(1) "Small employer" means a business with fifty or fewer employees;

(2) "IRA" means an individual retirement account or individual retirement annuity under Section 408 or 408A of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as from time to time amended;

(3) "Payroll deposit IRA arrangement" means an arrangement by which an employer makes its payroll system available to employees as a conduit for transferring salary reduction contributions to IRAs; and

(4) "SIMPLE plan" means a SIMPLE IRA program under section 408(p) of the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States as from time to time amended.

(b) The Comptroller shall establish a tax-qualified defined contribution retirement program to provide retirement investment plans, including, but not limited to, SIMPLE plans and payroll deposit IRA arrangements, for self-employed individuals, small employers and organizations qualifying as tax-exempt pursuant to Section 501(c)(3) of said Internal Revenue Code. In administering such plan, the Comptroller shall 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.

(c) In carrying out the provisions of this section, the Comptroller shall contract with a third-party administrator for the management of such plan or plans and shall recover from program assets expenses incurred to initiate, operate and administer the program established pursuant to subsection (a) of this section. "

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section