Sen. Fasano Statement on Public Retirement Program Proposal

January 21, 2016

HartfordSenate Minority Leader Len Fasano (R-North Haven) released the following statement regarding a public retirement program proposal outlined by the Connecticut Retirement Security Board.

“Encouraging people to save for retirement is a good thing, but forcing a new mandate and taking over a private-sector industry is not the appropriate role for the state. Connecticut should not be creating a new bureaucracy in state government with control over potentially billions of dollars in private investment, especially when even the Connecticut Retirement Security Board acknowledges the questionable financial sustainability of the program. It’s a risk both to taxpayers and contributing employers and employees. It also could result in employers who currently offer private retirement plans abandoning those for a state plan, causing harm to Connecticut businesses that offer these services now.

“The intent of this proposal may have merit. But there are other much less intrusive ways to encourage people to save without creating another unsustainable state entity. For example, in Washington a proposal to create a small-business retirement plan marketplace has garnered bipartisan support. Instead of putting the state in charge of creating a program, it allows private sector companies who offer retirement plans to connect with eligible employers and is completely voluntary. The state should not be getting in the way of business, it should be looking at ways to better support our businesses that already offer these services and connecting people to these options to encourage saving.”