Lavielle Amendment Would Impose Restrictions on State-Run Plan's Investments
HARTFORD – Commerce Committee Ranking Member State Representative Gail Lavielle (R-143) today joined House and Senate Republicans and a group of business advocates and financial advisors in opposition to SB 249, a bill that would create a state-run retirement fund and require Connecticut businesses that do not offer an alternative to enroll their employees automatically.
The bill, currently awaiting consideration on the state Senate calendar, would require those employers with participating employees to withhold 2%-5% of their income for deposit into the state-run retirement fund. Employees choosing not to participate would have to opt out in writing every two years. The state-run retirement plan would be managed by the State Comptroller's Office and a special oversight board. Administrative costs associated with the plan would increase state spending by $8 million. Connecticut would be the first state to implement a state-run retirement plan for private-sector employees.
"My colleagues and I join many of our constituents in the business and financial community in opposing this legislation for many reasons," Rep. Lavielle said. "It puts the state in direct conflict with businesses in the financial sector that provide retirement plans. It creates onerous financial and administrative obligations for businesses that must facilitate employee access to the state-run plan. It puts working people, private citizens, in the position of having to reject actively a requirement to spend their money on something they may not want or be able to afford. There are also numerous legal obstacles. Finally, it raises real questions about the role of government.
# # #
State Rep. Gail Lavielle represents Wilton, Norwalk, and Westport. She is Ranking Member of the General Assembly's Commerce Committee, and a member of the Appropriations, Education, and Higher Education Committees.