SB 249 Summary: Connecticut Retirement Security Trust Fund

• Establishes the Connecticut Retirement Security Trust Fund, a nonstate trust fund administered by the State Treasurer to promote retirement savings for private sector employees through individual retirement accounts.

• Creates an 11-member Connecticut Retirement Security Trust Fund Board consisting of academic experts, labor representatives, business community members, and state officials to design and oversee the public retirement plan.

• Requires private employers with five or more employees to offer eligible employees a payroll deduction option to participate in the plan, with automatic enrollment at a default contribution rate of 2-5% unless employees opt out.

• Plan features include portability through individual accounts, guaranteed interest rates, transition to inflation-indexed annuities at retirement, immediate vesting of all contributions, and quarterly reporting of account balances and estimated retirement income.

• Mandates a market feasibility study by December 15, 2014, with plan opening for enrollment no later than August 1, 2015, contingent on self-sustainability and favorable federal tax treatment determination.