Posted on 01/05/2015 9:37:59 PM PST by Citizen Zed
Illinois is taking a novel approach to getting its residents to save for retirement. Starting in 2017, most state residents who don’t already have a retirement plan at work will be automatically enrolled in individual retirement accounts, funded through a 3 percent deduction from their paychecks.
The program will be created under a law signed by Gov. Pat Quinn on Sunday. Participation will be voluntary, but workers who don’t want to save will need to opt out manually. (They will also be allowed to save more than 3 percent if they wish.) An estimate produced by the plan’s backers found that up to two million of the state’s residents may end up with the accounts.
The plan, called Secure Choice, aims at a gap in America’s retirement saving system: Employer-based savings plans are supposed to be an important source of Americans’ retirement income, but large employers are far more likely to offer such plans than small ones. The plan is similar to one President Obama has advocated at the federal level, and if it is successful in getting more people to save, it may end up being a model for other states and the federal government.
(Excerpt) Read more at mobile.nytimes.com ...
For now.
Progression of seat belt laws:
1. A secondary offense if pulled over for something else, and a young child was not seat belted.
2. A primary offense. You can be stopped and ticketed for a young child not seat belted.
3. A secondary offense if pulled over for something else, and anyone is not seat belted.
4. A primary offense. You can be stopped and ticket for anyone in the car not wearing a seat belt.
Nanny (read:statist) government is very good at incrementalism. It will be mandatory soon after implementation. Then, the government will take over management of all retirement accounts.
For your own good.
The IL regime will siphon off the interest that will accumulate from the savings accounts to keep for their own, to use for gov’t projects. The gov’t will get the interest, not the persons who join the new retirement accounts.
Sounds like “Social Security.”
Are they going to invest it in something ‘safe’ like municipal bonds?
All to be forfeited once you have your death panel review upon “retirement.”
Sounds like MYRA
Investing in the ObamaFund; Treasury rolls out a new savings plan without a Congressional vote.
http://www.freerepublic.com/focus/f-news/3241943/posts
Obama step closer to seizing retirement accounts
http://www.freerepublic.com/focus/f-news/3122884/posts
Yeah. But it’s “ opt out”. That means a lot of idiots will pay in because they are too stupid or can’t be bothered to opt out.
Ya and I am sure it will be as easy as getting out of paying the political portion of your Union Dues...
What a co-wink-a-dink, aren't Illinois State Pension Liabilities as bad off if not worse than California's?
Yep. Anyone who signs up for this is clinically insane.
I don’t really call something you are automatically enrolled in and have to “manually” opt out of ‘voluntary’.
This is like the Columbia Record club if you ask me.
If the government can’t spend it directly, they’ll borrow against it or figure out some other way to get at it. Your retirement money is safer with a heroin addict.
At least they offer an opt-out. I’m surprised they didn’t make it impossible to say “no”.
Funds are supposed to managed by a private investment firm and the state won't have access to them. Details at this point are a little sketchy on what type of funds will be offered. It doesn't go online until 2017. It is suppose to be a Roth 401K style account, which means taxes are paid going in. The state is broke. It wouldn't benefit them to do a regular tax deferred 401K even though it could be beneficial to some people.
I’m sure this’ll be OK.
Didn’t the Republicans try to do this with social security and the Dems called it cuts?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.