HARTFORD — The Senate passed legislation Saturday creating a retirement savings program for the estimated 600,000 Connecticut residents who do not have a retirement savings plan available to them through their employer, according to a press release from Senate President Martin M. Looney.

The legislation creates a program in which employees would make voluntary contributions which will be deposited into a professionally managed retirement fund. All workers will be provided the chance to enroll in a retirement savings program according to the release.

Employers would not bear any fiduciary responsibility and would not be required to pay administrative fees. The program is designed to be self-sustaining and low-risk

“Far too many Connecticut residents are approaching retirement without adequate savings. While Social Security has lifted many senior citizens out of abject poverty, it does not in fact provide a decent living for those with no other source of retirement income,” said Looney, D-New Haven. “This problem will become one of extraordinary urgency as more and more children of the baby boom reach retirement age.

“Many Connecticut citizens whose employers do not offer retirement plans are moderate income workers who are most in need of income beyond Social Security and, in general, workers of moderate income do not have the option of setting aside significant amounts in personal retirement savings since their earnings and ordinary expenses barely balance. However, a convenient payroll deduction programs will greatly increase the number of people who save systematically for retirement. ”

Earlier this year, AARP, shared the results from A Common Sense Approach: The 2016 Connecticut Work and Save Plan, a survey of 1,000 voters conducted by the AARP Public Policy Institute. According to the survey:

Seventy-nine percent, or eight out of 10, of Connecticut registered voters, age 35-64, agree that elected officials should support a state retirement savings plan.

Eighty-eight percent say they wish they had saved more for retirement.

Sixty-one percent, or 3 out of 5, say they are concerned that some residents have not saved enough for retirement and could end up being reliant on public assistance.

In 2014, Looney led passage of legislation creating the Connecticut Retirement Security Board (CRSB) which was tasked with conducting a market feasibility study and a comprehensive proposal for the creation of a retirement plan for private sector workers. The legislation passed today is the product of their work, according to the release.

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