(a) The Connecticut Retirement Security Authority shall provide for the establishment and maintenance of an individual retirement account for each program participant. Such individual retirement account shall be established and maintained through the program. Program assets shall be held in trust or custodial accounts meeting the requirements of Section 408(a) or (c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, or any other applicable federal law requirements.
(b) Interest, investment earnings and investment losses shall be allocated to each participant's individual retirement account. A participant's benefit under the program shall be equal to the balance in such participant's individual retirement account as of any applicable measurement date prescribed by the program.
(c) The Connecticut Retirement Security Authority shall establish, or cause to be established, processes to prevent a participant's contributions to the program from exceeding the maximum amount of deduction under 26 USC 219(b)(1) for the participant's tax year.
(d) The state shall not be liable for the payment of any benefit to any participant or beneficiary of any participant and shall not be liable for any liability or obligation of the authority. The authority shall not be liable for the payment of any benefit to any participant or beneficiary of any participant, except with respect to any individual retirement accounts established and maintained by the authority.
(e) Any unclaimed funds in a participant's individual retirement account shall be governed by section 3-57a.
(f) The Connecticut Retirement Security Authority shall minimize total annual fees associated with the program, except on and after the completion of the fourth calendar year following the first date on which the program becomes effective pursuant to section 31-422, the total annual fees associated with the program shall not exceed three-quarters of one per cent of the total value of the program assets.
(P.A. 16-29, S. 5; May Sp. Sess. P.A. 16-3, S. 99, 207.)
History: P.A. 16-29 effective May 27, 2016; May Sp. Sess. P.A. 16-3 changed effective date of P.A. 16-29, S. 5, from May 27, 2016, to January 1, 2017, effective June 2, 2016, and amended Subsec. (a) by replacing “Connecticut Retirement Security Program” with “Connecticut Retirement Security Authority” and deleting provision re third-party entity and added Subsec. (f) re total annual fees associated with program, effective January 1, 2017.