SB 54 - Connecticut Retirement Security Trust Fund

• Establishes the Connecticut Retirement Security Trust Fund, a nonlapsing fund held by the State Treasurer to provide retirement savings accounts for private sector workers without access to employer-sponsored plans.

• Creates an 11-member Connecticut Retirement Security Trust Fund Board appointed by legislative leaders, the Governor, and state officials to oversee plan design and administration, with the State Comptroller and Treasurer serving as co-chairpersons.

• Requires qualified employers with 5+ employees to offer eligible employees automatic enrollment in the plan with payroll deduction contributions at a default rate of at least 3%, with employees able to opt out or opt in at any time.

• Mandates individual retirement accounts feature automatic rollover between employers, transition to inflation-indexed annuities at retirement, guaranteed interest rates, quarterly reporting, and immediate vesting of all contributions.

• Requires a market feasibility study by December 15, 2013, and prohibits plan implementation until the board determines the program will be self-sustaining and qualifies for favorable federal tax treatment under the Internal Revenue Code.