STATE OF CONNECTICUT
THE STATE COMPTROLLER
STATE RETIREMENT-SAVINGS PLAN TO BE OFFERED TO CITIES AND
Comptroller Wyman Says Plan Offers Reduced Fees, Wider Investment Options
State Comptroller Nancy Wyman today announced that employees of all Connecticut cities and towns will be eligible to enroll in the state's retirement-savings plan starting early next year.
"The current economic climate of rising costs and declining benefits makes preparing for retirement a challenge for many working people," Wyman said. "This program will give municipal employees an option to participate in a well-managed savings plan that has very low administrative fees."
The program - which bears no cost to taxpayers - is known as a Deferred Compensation 457 plan, through which a designated portion of an employee's salary is deposited pre-tax into a selected investment fund. Wyman restructured the plan earlier this year in order to reduce fees and increase investment choices.
The state plan is now administered by ING Investment Management, of Hartford, and includes 24 investment options. The 26,000 state employees enrolled in the state plan - which has $1.2 billion in assets - have collectively saved more than $6 million dollars in fees so far.
"That is hard-earned money being deposited into the workers' accounts instead of being paid in fees," Wyman said.
Many of the state's 169 municipalities now offer retirement-savings plans, but they typically contain higher administrative fees and fewer investment options than the state plan.
Wyman noted that municipal employees will be eligible to participate in the state plan only upon the enrollment of the employee's municipal government, which may be subject to a labor-management agreement.
The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - email@example.com
Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.
For Immediate Release
October 18, 2005
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