Bill creating private-sector retirement accounts passes

Photo Courtesy: MGNonline

HARTFORD, Conn. (AP) – With the help of Lt. Gov. Nancy Wyman, Connecticut lawmakers have passed legislation creating a retirement savings program for eligible private-sector employees.

The Democratic lieutenant governor broke an 18-18 tie in the Senate Saturday, cementing final legislative approval of a measure first proposed several years ago. It now moves to the governor.

The bill creates an agency that will establish a Roth individual retirement account program for workers whose employers have at least five employees paid at least $5,000 in the preceding year. The employers will be required to automatically enroll each worker, who can opt out.

Proponents say the bill is needed because 600,000 Connecticut workers don’t have access to a workplace retirement program. Opponents say workers can open their own IRAs and the bill creates a burden for employers.

Comments are closed.