State-Run Retirement Plans for Private-Sector Employees

According to a recent article in Governing, proposals for state-run retirement plans for private–sector employees have been raised in at least 12 different states, including Connecticut. So far, only Massachusetts has enacted such a plan and it is limited to non-profit workers at companies with 20 or fewer employees. In general, the various proposals call for the state to administer a defined contribution plan (like a 401K) into which private-sector employees and employers could contribute. The states would not contribute any money into the retirement plans or assume any liability for benefits.

In Connecticut, this past session’s HB 5313 created a task force to explore and report on such a proposal. The bill passed the House but was never called in the Senate.