Saying a state provision requiring people to be employed for at least 10 years before being vested in retirement plans, the Connecticut Airport Authority board of directors created its own program.
Board Vice Chairman Michael Long said the state requires all CAA employees to be part of the state retirement program. However, under the state program anyone who retires before they’ve been an employee for 10 years won’t get any of the pension plan they contributed to, Long said.
“Anyone who is within 10 years of retiring won’t here because they will have no retirement benefits,” Long said.
CAA officials had asked the state legislature to change the vesting requirement so they could have more flexibility in attracting new employees from the outside, Long said. The legislature didn’t get to it in the last session.
On Thursday, the board voted to create a 401A program that employees in which employees contribute money and begin vesting at 20 percent after one year of employment and become fully vested after five years. Providing the plan was recommended by the board’s human resources committee.
Long said they need to provide a retirement benefit plan for Executive Director Kevin Dillon and anyone he hires off the street.
Dillon said the plan is for any employees who are not coming over from the state during the transition.
The board also created a deferred compensation program or a 457B plan.