Sec. 31-418. Connecticut Retirement Security Exchange.
Sec. 31-419. Informational materials. Individual retirement account statement. Notification of fees.
Sec. 31-423. Investment vehicles. Vendor selection.
Sec. 31-428. Board of directors to establish and maintain Internet web site for participants.
Sec. 31-418. Connecticut Retirement Security Exchange. (a) There is established the Connecticut Retirement Security Exchange the purpose of which shall be to promote and enhance retirement savings for private sector employees in the state. The board of directors of the Connecticut Retirement Security Authority may:
(1) Adopt bylaws for the regulation of the affairs of the board and the conduct of its business;
(2) Adopt an official seal and alter the same at the pleasure of the board;
(3) Maintain an office at such place or places in the state as the board may designate;
(4) Sue and be sued in its own name;
(5) Establish criteria and guidelines for the program to offer qualified retirement investment choices. Such criteria and guidelines shall establish a cap on total annual fees and shall provide participants with information regarding each retirement investment choice's historical investment performance;
(6) Receive and invest moneys in the program in any instruments, obligations, securities or property in accordance with section 31-423;
(7) Contract with financial institutions or other organizations offering or servicing retirement programs. The authority may require that each participant be charged a fee to defray the costs of the program. The amount and method of collection of such fee shall be determined by the authority. No employer shall be required to fund or be responsible for collecting fees from plan participants;
(8) Employ such employees as may be necessary in the board's judgment, and to fix the compensation of such persons;
(9) Charge and equitably apportion among participants the administrative costs and expenses incurred in the exercise of the board's powers and duties as granted by this section;
(10) Borrow working capital funds and other funds as may be necessary for the start-up and continuing operation of the program, provided such funds are borrowed in the name of the authority only. Such borrowings shall be payable solely from revenues of the authority;
(11) Make and enter into contracts or agreements with the state and any instrumentalities thereof and professional service providers, including, but not limited to, financial consultants and lawyers, as may be necessary or incidental to the performance of the board's duties and the execution of its powers under this section;
(12) Establish policies and procedures for the protection of program participants' personal and confidential information; and
(13) Do all things necessary or convenient to carry out the provisions of section 31-71e, sections 31-417 to 31-427, inclusive, and section 12 of public act 16-29*.
(b) The board of directors of the Connecticut Retirement Security Authority shall enter into memoranda of understanding with the Labor Department and other state agencies regarding (1) the gathering or dissemination of information necessary for the operations of the program, subject to such obligations of confidentiality as may be agreed or required by law, (2) the sharing of costs incurred pursuant to the gathering and dissemination of such information, and (3) the reimbursement of costs for any enforcement activities conducted pursuant to section 31-425. Each state agency may also enter into such memoranda of understanding.
(P.A. 16-29, S. 3; May Sp. Sess. P.A. 16-3, S. 97, 207; P.A. 19-117, S. 99.)
*Note: Section 12 of public act 16-29 is special in nature and therefore has not been codified but remains in full force and effect according to its terms.
History: P.A. 16-29 effective May 27, 2016; May Sp. Sess. P.A. 16-3 changed effective date of P.A. 16-29, S. 3, from May 27, 2016, to January 1, 2017, effective June 2, 2016, and amended Subsec. (a) by replacing “Connecticut Retirement Security Program” with “Connecticut Retirement Security Exchange”, amended Subsec. (a)(5) by replacing provision re retirement programs to be offered with provisions re program to offer qualified retirement investment choices, cap on annual fees and information to be provided to participants, amended Subsec. (a)(8) by replacing “attorneys, accountants, consultants, financial experts, loan processors, banks, managers and such other employees and agents” with “such employees”, amended Subsec. (a)(11) by adding “the state and any instrumentalities thereof”, and made a technical change, effective January 1, 2017; P.A. 19-117 amended Subsec. (a)(5) by deleting provision re offer by multiple vendors as selected by authority, effective July 1, 2019.
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Sec. 31-419. Informational materials. Individual retirement account statement. Notification of fees. (a) The Connecticut Retirement Security Authority board of directors shall prepare informational materials regarding the Connecticut Retirement Security Exchange for distribution by qualified employers to plan participants and prospective plan participants pursuant to section 31-422. Such informational materials shall include, but need not be limited to:
(1) The benefits and risks associated with making contributions to or making withdrawals from the program;
(2) The process for making contributions to the program, including a contribution election form;
(3) Clear and conspicuous notice regarding the default contribution level;
(4) The process by which a participant may opt out of the program by electing a contribution level of zero;
(5) A description of applicable federal and state regulations, including income and contribution limits for participating in the program;
(6) The process for withdrawing retirement savings from the program, including an explanation of the tax treatment of withdrawals;
(7) The process by which a participant may obtain additional information on the program, including information regarding investment options available under the program; and
(8) Such other information as the board may deem necessary or advisable to provide to participants, potential participants and qualified employers in the state.
(b) Not less than quarterly, the board shall provide a statement to each participant that shall include, but need not be limited to, the following information:
(1) The account balance in a participant's individual retirement account, including the value of the participant's investment in each investment option selected by the participant;
(2) The investment options available to each participant and the process by which a participant may select investment options for his or her contributions in accordance with subsection (b) of section 31-71j or as prescribed by the authority;
(3) The amount of fees charged to each participant's individual retirement account and a description of the services to which such charges relate; and
(4) At the election of the board, an estimate of the amount of income the account is projected to generate for a participant's retirement based on reasonable assumptions.
(c) Not less than annually, the board shall provide each participant with notification regarding fees that may be imposed through the program and information regarding the various investment options that may be available to participants. The board may provide such notification and information in the form of a prospectus or similar document.
(d) The board, on behalf of the authority, may adopt policies and procedures in accordance with the provisions of section 1-121 for the electronic dissemination of any notices or information required to be provided to participants, potential participants and qualified employers pursuant to the provisions of this section.
(P.A. 16-29, S. 4; May Sp. Sess. P.A. 16-3, S. 98, 207; P.A. 19-117, S. 100.)
History: P.A. 16-29 effective May 27, 2016; May Sp. Sess. P.A. 16-3 changed effective date of P.A. 16-29, S. 4, from May 27, 2016, to January 1, 2017, effective June 2, 2016, and replaced “Connecticut Retirement Security Program” with “Connecticut Retirement Security Exchange” in Subsec. (a) and made technical changes, effective January 1, 2017; P.A. 19-117 deleted “various vendors'” in Subsec. (b)(2), effective July 1, 2019.
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Sec. 31-423. Investment vehicles. Vendor selection. The Connecticut Retirement Security Authority shall provide for each participant's account to be invested in (1) an age-appropriate target date fund, or (2) other investment vehicles the authority may prescribe if affirmatively selected by the participant.
(P.A. 16-29, S. 8; May Sp. Sess. P.A. 16-3, S. 102, 207; P.A. 19-117, S. 101.)
History: P.A. 16-29 effective May 27, 2016; May Sp. Sess. P.A. 16-3 changed effective date of P.A. 16-29, S. 8, from May 27, 2016, to January 1, 2017, effective June 2, 2016, and designated existing provisions re investment of participant's account as Subsec. (a) and amended same to add provision re participant to select vendor and added Subsec. (b) re investment of contribution if participant does not select specific vendor or investment option, effective January 1, 2017; P.A. 19-117 deleted Subsec. (b) re participant not selecting specific vendor or investment option, deleted Subsec. (a) designator, added “if affirmatively selected by the participant” in Subdiv. (2) and made technical and conforming changes, effective July 1, 2019.
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Sec. 31-428. Board of directors to establish and maintain Internet web site for participants. The Connecticut Retirement Security Authority board of directors shall establish and maintain a secure Internet web site to provide Connecticut Retirement Security Exchange participants with information regarding the various investment options offered through the program, including the historical investment performance of such options.
(May Sp. Sess. P.A. 16-3, S. 106; P.A. 19-117, S. 102.)
History: May Sp. Sess. P.A. 16-3 effective January 1, 2018; P.A. 19-117 deleted provision re approved vendors, added provision re various investment options offered through the program and made a conforming change, effective July 1, 2019.
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