The latest State to Adopt a Government-Run 401(k)

Connecticut passes state-run 401(k) bill.

Connecticut passes state-run 401(k) bill.

Lt. Gov. Nancy Wyman broke an 18-18 tie in the Connecticut Senate on Saturday, as Constitution State lawmakers became the latest to pass legislation creating a retirement savings program for eligible private-sector employees not already covered by a 401(k) plan.

The local NBC affiliate reports that Wyman’s actions cemented 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,” NBC Connecticut adds. “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.

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