Some Connecticut officials want to set up a state-run retirement plan for small businesses, self-employed individuals and not-for-profits.
The Connecticut plan administrative fees could be about 50% lower than the fees at conventional plans, according to Connecticut Comptroller Nancy Wyman and state lawmakers who are working with her to develop the program proposal.
Program organizers believe the program would be the first state-run retirement plan aimed at residents in the private sector.
Organizers came up with the idea because of reports that only about 25% of Connecticut businesses with fewer than 100 employees offer 401(k) plans. The high cost of administering the plans is one barrier that keeps small businesses from offering them, Wyman says.