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SB 620

AN ACT MAKING THE CONNECTICUT RETIREMENT SECURITY PROGRAM AN OPT-IN PROGRAM, ESTABLISHING THE DEFAULT CONTRIBUTION RATE AS ZERO, REQUIRING THE COMPTROLLER TO BE A LICENSED SECURITY BROKER AND PROHIBITING THE COMPTROLLER FROM SCREENING OR CHOOSING INVESTMENT VEHICLES BASED ON ANY CRITERIA OTHER THAN THE NET RETURNS TO PARTICIPANTS.

2025 Regular Session Introduced by Rob Sampson

SB 620 converts Connecticut's auto-enrolled retirement program to opt-in with zero default contributions and restricts state investment decisions to financial returns only.

REF. TO JOINT COMM. ON Labor and Public Employees
#connecticutretirementsecurityauthority
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Bill Summary · SB 620

Legislative bill overview

SB 620 would convert Connecticut's retirement security program from an opt-out system (where workers are automatically enrolled) to an opt-in system (where workers must actively choose to participate). The bill also sets the default contribution rate to zero, requires the state comptroller managing the program to hold a securities broker license, and restricts investment decisions to be based solely on financial returns rather than other criteria like environmental or social factors.

Why is this important

This bill directly affects how Connecticut workers save for retirement, potentially reducing participation in a state-facilitated savings program designed to help workers without employer retirement plans. The investment restrictions would eliminate consideration of factors like climate risk, labor practices, or other non-financial metrics when selecting where program funds are invested—a significant shift from current fiduciary practices in many public pension systems.

Potential points of contention

  • Participation impact: Switching to opt-in enrollment typically results in significantly lower participation rates (studies show 70-90% drops), potentially undermining the program's purpose of expanding retirement security for underserved workers
  • Investment screening restrictions: Prohibiting non-financial criteria (ESG factors, fossil fuel exposure, etc.) removes tools many fiduciaries use to manage long-term risk and conflicts with how many public retirement systems currently operate
  • Comptroller licensing requirement: Mandating a securities broker license for the comptroller may limit qualified candidates and raises questions about potential conflicts of interest between broker licensing standards and fiduciary duties

Compiled from official sources — confirm details with the bill’s official record.

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