June 20, 2016
For private employees who donâ€™t have workplace plans, Connecticut will now have a state-sponsored plan to save for retirement. Unfortunately, what could have been a useful program was severely weakened with changes required by Governor Dannel Malloy in the face of fierce financial services industry lobbying.
This is what happened.
In 2014 labor, senior, and progressive organizations lobbied the legislature to set up a state-sponsored retirement savings program to address the growing retirement crisis, a component of which was that half of the Connecticutâ€™s private labor force lacked employer-sponsored plans.
Over financial services industry opposition the bill narrowly passed. The first step mandated by the bill was to establish the Connecticut Retirement Security Board, on which I served. Its task was to study the issue and design a program that would then be proposed as a new legislative bill.