A new study examines what small business owners in Connecticut think about the state’s new retirement plan and how well they grasp it. The Nutmeg State’s system for private-sector employees has been in place since May 27, 2016.
With other states putting similar plans in place and still more considering them, the results may offer a look at what other states may anticipate, and questions and concerns they may face.
The LIMRA Secure Retirement Institute based its study on a series of four focus groups composed of business owners or executives who had five or more employees, did not offer retirement plans and would be responsible for decisions about defined contribution plans if they offered them. The plan requires all businesses with five or more employees to offer a retirement plan themselves or through the state-run program.
LIMRA reports that reactions were “mixed.” Indeed, LIMRA did find good news and bad news for Connecticut legislators who enacted the measure. The good news: LIMRA said that few disputed that access to a retirement plan for employees is a good thing, and that the real debate concerned how best to do that. Those that supported the plan appreciate the state’s involvement and the option of being able to offer a new benefit they could not before.
The bad news: Participants also evinced confusion about the plan and how would affect them. Some were not even aware that the state plan exists. Still others were skeptical that their employees would find it worthwhile and take advantage of it, and some do not trust government to run a plan.
With other states putting similar plans in place and still more considering them, the results may offer a look at what other states may anticipate, and questions and concerns they may face.
The LIMRA Secure Retirement Institute based its study on a series of four focus groups composed of business owners or executives who had five or more employees, did not offer retirement plans and would be responsible for decisions about defined contribution plans if they offered them. The plan requires all businesses with five or more employees to offer a retirement plan themselves or through the state-run program.
LIMRA reports that reactions were “mixed.” Indeed, LIMRA did find good news and bad news for Connecticut legislators who enacted the measure. The good news: LIMRA said that few disputed that access to a retirement plan for employees is a good thing, and that the real debate concerned how best to do that. Those that supported the plan appreciate the state’s involvement and the option of being able to offer a new benefit they could not before.
The bad news: Participants also evinced confusion about the plan and how would affect them. Some were not even aware that the state plan exists. Still others were skeptical that their employees would find it worthwhile and take advantage of it, and some do not trust government to run a plan.
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