Connecticut § 31-416 - Definitions.

§ 31-416. Definitions.

Sec. 31-416. Definitions. As used in this section, section 31-71e, and sections 31-417 to 31-427, inclusive:

(1) “Board” means the Connecticut Retirement Security Advisory Board established pursuant to section 31-417;

(2) “Contribution level” means (A) the contribution rate selected by the participant that may be expressed as (i) a percentage of the participant's taxable wages as is required to be reported under Sections 6041 and 6051 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 (ii) a dollar amount up to the maximum deductible amount for the participant's taxable year under Section 219(b)(1) 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 (B) in the absence of an affirmative election by the participant, three per cent of the participant's taxable wages as is required to be reported under Sections 6041 and 6051 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time. The contribution level of a participant who customarily and regularly receives gratuities in conjunction with his or her employment shall be a percentage of such participant's wages as is required to be reported under Sections 6041 and 6051 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time;

(3) “Covered employee” means an individual (A) who has been employed by a qualified employer for a period of not less than one hundred twenty days, (B) who is nineteen years of age or older, (C) who performs services within the state for purposes of section 31-222, and (D) whose service or employment is not excluded under the provisions of subdivision (5) of subsection (a) of section 31-222;

(4) “Participant” means any individual participating in the program;

(5) “Program” means the Connecticut Retirement Security Program established pursuant to section 31-418;

(6) “Qualified employer” means any person, corporation, limited liability company, firm, partnership, voluntary association, joint stock association or other entity doing business in the state during the calendar year, whether for profit or not for profit, that employed on October first of the preceding calendar year five or more individuals in the state and has paid not less than five of such individuals taxable wages of not less than five thousand dollars in the preceding calendar year. “Qualified employer” does not include: (A) The federal government, (B) the state or any political subdivision thereof, (C) any municipality, unit of a municipality or municipal housing authority, (D) an employer employing only individuals whose services are excluded under subdivision (5) of subsection (a) of section 31-222, or (E) an employer that was not in existence at all times during the current calendar year and the preceding calendar year;

(7) “Individual retirement account” means a Roth IRA;

(8) “Roth IRA” means an account described in Section 408A of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time;

(9) “Normal retirement age” means the age specified in Section 408A of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, when an individual may withdraw all funds without penalty;

(10) “Vendor” means (A) a federally regulated retirement plan sponsor conducting business in the state, including, but not limited to, a federally regulated investment company or an insurance company, or (B) a company conducting business in the state to (i) provide ancillary services, including, but not limited to, technological, payroll or recordkeeping services, and (ii) offer retirement plans or payroll deposit individual retirement account arrangements using products of regulated retirement plan sponsors. “Vendor” does not include individual registered representatives, brokers, financial planners or agents; and

(11) “Fee” means investment management charges, administrative charges, investment advice charges, trading fees, marketing and sales fees, revenue sharing, broker fees and other costs necessary to administer the program.

(P.A. 16-29, S. 1; May Sp. Sess. P.A. 16-3, S. 95; P.A. 22-118, S. 96.)

History: P.A. 16-29 effective May 27, 2016; May Sp. Sess. P.A. 16-3 amended Subdiv. (3)(B) by deleting provision re amount determined by authority not to exceed 6 per cent, amended Subdiv. (6) by replacing “Connecticut Retirement Security Program” with “Connecticut Retirement Security Exchange”, amended Subdiv. (11) by redefining “vendor”, added Subdiv. (12) defining “fee” and made technical changes, effective June 2, 2016; P.A. 22-118 deleted Subdiv. (1) and redesignated remaining Subdivs., amended redesignated Subdiv. (1) by replacing “Connecticut Retirement Security Authority board of directors” with “Connecticut Retirement Security Advisory Board,” and amended redesignated Subdiv. (5) by replacing “Connecticut Retirement Security Exchange” with “Connecticut Retirement Security Program,” effective July 1, 2022.