The American Society of Pension Professionals & Actuaries is against legislation in Connecticut that would create a state 401(k) plan for small businesses, said Chris Robichaux, spokesman for ASPPA. ASPPA executives contend the state-operated plan would be expensive to administer and would not necessarily provide residents with a better alternative to the existing competitive market in 401(k) plans, Mr. Robichaux said.
The Connecticut legislation would offer businesses with fewer than 100 employees participation in a state-operated 401(k) plan. Thomas Woodruff, director of retirement and benefit services for the state's defined contribution plans, has said that the new plan would offer lower fees than similar corporate plans and encourage small-business employers to establish 401(k) plans.
ASPPA is a national organization of retirement plan professionals that provide consulting and administrative services for qualified retirement plans.