OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-54

AN ACT ESTABLISHING A RETIREMENT SAVINGS PLAN FOR LOW-INCOME PRIVATE SECTOR WORKERS.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Comptroller; Treasurer

GF - Potential Cost

100,000

None

Treasurer; Comptroller

Connecticut Retirement Security Trust Fund - Cost

None

See Below

Treasurer

Connecticut Retirement Security Trust Fund - Revenue Gain

None

See Below

Municipal Impact: None

Explanation

The bill establishes and requires the Connecticut Retirement Security Trust Fund Board to conduct a market feasibility study, which is expected to be contracted with an expert and to cost approximately $100,000. The source of funding for the study is not specified. There will be a cost of $100,000 to the General Fund if the Office of the State Comptroller or the Office of the State Treasurer, who are co-chairs of the Board, provide funding for the study. In addition, it is unclear whether members of the Board would be reimbursed for travel expenses for meetings that occur prior to the establishment of the Connecticut Retirement Security Trust Fund. The source of funding for potential board expenses is also unspecified.

If the market feasibility study indicates that the plan will be self-sustaining, the bill requires the Board to set-up the Trust Fund. The resources of the Fund will be held in a separate account that is invested by the Office of the Treasurer. The plan is administered by the Office of the State Comptroller and overseen by the Board. This is not expected to have a state fiscal impact because it is anticipated that all costs associated with the Fund and the plan will be paid by contributions made by participants and investment income on those contributions.

The Out Years

State Impact: None

Municipal Impact: None