(a) There is hereby established and created a body politic and corporate, constituting a public instrumentality and political subdivision of the state of Connecticut established and created for the performance of an essential public and governmental function, to be known as the Connecticut Retirement Security Authority. The authority shall not be construed to be a department, institution or agency of the state.
(b) The powers of the authority shall be vested in and exercised by a board of directors, which shall consist of fifteen voting members, each a resident of the state, (1) the State Treasurer who shall serve as an ex-officio voting member; (2) the State Comptroller who shall serve as an ex-officio voting member; (3) the Secretary of the Office of Policy and Management who shall serve as an ex-officio voting member; (4) the Banking Commissioner who shall serve as an ex-officio voting member; (5) the Labor Commissioner who shall serve as an ex-officio voting member; (6) one appointed by the speaker of the House of Representatives, who shall have a favorable reputation for skill, knowledge and experience in the interests of the needs of aging population; (7) one appointed by the majority leader of the House of Representatives, who shall have a favorable reputation for skill, knowledge and experience in the interests of small employers in retirement savings; (8) one appointed by the minority leader of the House of Representatives, who shall have a favorable reputation for skill, knowledge and experience in the interests of retirement investment products; (9) one appointed by the president pro tempore of the Senate, who shall have a favorable reputation for skill, knowledge and experience in the interests of employees in retirement savings; (10) one appointed by the majority leader of the Senate, who shall have a favorable reputation for skill, knowledge and experience in retirement plan designs; (11) one appointed by the minority leader of the Senate, who shall have a favorable reputation for skill, knowledge and experience in the interests of retirement plan brokers; and (12) four appointed by the Governor, one who shall have a favorable reputation for skill, knowledge and experience in matters regarding the federal Employment Retirement Income Security Act of 1974, as amended from time to time, or the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as amended from time to time, one who shall have a favorable reputation for skill, knowledge and experience in annuity products, one who shall have a favorable reputation for skill, knowledge and experience in retirement investment products, and one who shall have a favorable reputation for skill, knowledge and experience in actuarial science. Each member appointed pursuant to subdivisions (6) to (12), inclusive, of this subsection shall serve an initial term of four years. Thereafter, said members of the General Assembly and the Governor shall appoint members of the board to succeed such appointees whose terms expire and each member so appointed shall hold office for a term of six years from July first in the year of his or her appointment.
(c) All appointments to the board shall be made not later than January 1, 2017. Any vacancy shall be filled by the appointing authority not later than thirty calendar days after the office becomes vacant. Any member previously appointed to the board may be reappointed.
(d) The Governor shall select a chairperson of the board from among the members of the board. The board shall annually elect a vice-chairperson and such other officers as it deems necessary from among its members. The board may appoint an executive director who shall not be a member of the board and who shall serve at the pleasure of the board. The executive director shall be an employee of the authority and shall receive such compensation as prescribed by the board.
(e) The members of the board shall serve without compensation but shall, within available appropriations, be reimbursed in accordance with the standard travel regulations for all necessary expenses that they may incur through service on the board.
(f) (1) Each member of the board shall, not later than ten calendar days after his or her appointment, take and subscribe the oath of affirmation required by article XI, section 1, of the State Constitution. Each member's term shall begin from the date the member takes such oath. The oath shall be filed in the office of the Secretary of the State.
(2) Each member of the board authorized by resolution of the board to handle funds or sign checks for the program, and any other authorized officer, shall, not later than ten calendar days after the date the board adopts such authorizing resolution, execute a surety bond in the penal sum of fifty thousand dollars or procure an equivalent insurance product or, in lieu thereof, the chairperson shall obtain a blanket position bond covering the executive director and every member of the board and other employee or authorized officer of the authority in the penal sum of fifty thousand dollars. Each such bond or equivalent insurance product shall be (A) conditioned upon the faithful performance of the duties of the chairperson or the members, executive director and other authorized officers or employees, as the case may be, and (B) issued by an insurance company authorized to transact business in the state as surety. The cost of each such bond shall be paid by the authority.
(g) An authorized officer or the executive director, if one is appointed by the board pursuant to subsection (d) of this section, shall supervise the administrative affairs and technical activities of the program in accordance with the directives of the board. Such authorized officer or executive director, as the case may be, shall keep a record of the proceedings of the program and shall be custodian of all books, documents and papers filed with the program, the minute book or journal of the program and its official seal. Such authorized officer or executive director, as the case may be, may cause copies to be made of all minutes and other records and documents of the program and may give certificates under the official seal of the program to the effect that such copies are true copies, and all persons dealing with the program may rely upon such certificates.
(h) Eight members of the board shall constitute a quorum for the transaction of any business or the exercise of any power of the authority. Each member shall be entitled to one vote on the board.
(i) (1) No member of the board or any officer, agent or employee of the authority shall, directly or indirectly, have any financial interest in any corporation, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity contracting with the authority.
(2) Notwithstanding the provisions of subdivision (1) of this subsection or any other section of the general statutes, it shall not be a conflict of interest or a violation of the provisions of said subdivision or any other section of the general statutes for a trustee, director, officer or employee of a bank, investment advisor, investment company or investment banking firm, or a person having the required favorable reputation for skill, knowledge and experience in retirement savings, to serve as a member of the board, provided, in each case to which the provisions of this subdivision are applicable, such trustee, director, officer or employee of such a firm abstains from discussion, deliberation, action and vote by the board in specific respect to any undertaking pursuant to this section, section 31-71e, sections 31-418 to 31-427, inclusive, or section 12 of public act 16-29* in which such firm has a direct interest separate from the interests of all similar firms generally.
(j) The board, on behalf of the authority, and for the purpose of implementing the Connecticut Retirement Security Exchange established pursuant to section 31-418, shall adopt written procedures in accordance with the provisions of section 1-121 for the purposes of:
(1) Adopting an annual budget and plan of operations, including a requirement of board approval before such budget or plan may take effect;
(2) Hiring, dismissing, promoting and compensating employees of the authority, instituting an affirmative action policy and requiring board approval before a position may be created or a vacancy filled;
(3) Acquiring real and personal property and personal services, including requiring board approval for any nonbudgeted expenditure in excess of five thousand dollars;
(4) Contracting for financial, legal and other professional services, and requiring that the authority solicit proposals not less than every three years for each such service used by the board or authority, except for any firm that contracts to provide custodial, recordkeeping or other services for the provision of an individual retirement account such solicitation shall be not less than every ten years;
(5) Using surplus funds to the extent authorized under subdivision (12) of section 1-79, subdivision (1) of section 1-120, sections 1-124, 1-125, 31-71e, 31-71j, 31-416 to 31-427, inclusive, and 31-429, and section 12 of public act 16-29* or other provisions of the general statutes;
(6) Making modifications to the program that the board deems necessary to implement the provisions of section 31-71e, sections 31-417 to 31-427, inclusive, and section 12 of public act 16-29* consistent with federal rules and regulations in order to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, and to prevent the program from being treated as an employee benefit plan under the federal Employee Retirement Income Security Act of 1974, as amended from time to time; and
(7) Establishing an administrative process by which participants, potential participants and employees may submit grievances, complaints and appeals to the board and have such grievances, complaints and appeals heard and addressed by the board.
(k) The authority shall continue as long as the program remains in effect and until its existence is terminated by law. Upon termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state of Connecticut.
(l) The provisions of this section and section 1-125 shall apply to any member, director or employee of the authority. No person shall be subject to civil liability for the debts, obligations or liabilities of the authority as provided in this section and section 1-125.
(P.A. 16-29, S. 2; May Sp. Sess. P.A. 16-3, S. 96.)
*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 amended Subsec. (b) by increasing number of voting members from 9 to 15, adding new Subdivs. (3) to (6) re Secretary of the Office of Policy and Management, Banking Commissioner and Labor Commissioner, respectively, redesignating existing Subdivs. (3) to (9) as Subdivs. (6) to (12), further amending redesignated Subdiv. (7) to replace “employers” with “small employers” and further amending redesignated Subdiv. (12) to add provisions re members who have favorable reputations for skill, knowledge and experience in annuity products, retirement investment products and actuarial science, amended Subsec. (c) by replacing “July 31, 2016” with “January 1, 2017” re appointments, amended Subsec. (d) by deleting “, with the advice and consent of both houses of the General Assembly,” and deleting references to assistant executive director, amended Subsec. (f)(1) by deleting provision re Secretary of the State to administer oath, amended Subsec. (h) by increasing number of members constituting quorum from 4 to 8, amended Subsec. (j) by replacing “Connecticut Retirement Security Program” with “Connecticut Retirement Security Exchange”, and made technical and conforming changes, effective June 2, 2016.