Posted on 09/29/2012 2:14:19 PM PDT by Libloather
Calif. creates state-run private retirement plan
By JUDY LIN | Associated Press – 18 hrs ago
SACRAMENTO, Calif. (AP) — California Gov. Jerry Brown signed legislation Friday that will create the nation's first state-administered retirement savings program for private-sector workers, over the objection of critics who said it creates a new liability for taxpayers.
The bill will establish the California Secure Choice Retirement Savings Program for more than 6 million lower-income, private-sector workers whose employers do not offer retirement plans.
The program directs employers to withhold 3 percent of their workers' pay unless the employee opts out of the savings program, which can be done every two years. It would be administered by a seven-member board chaired by the state treasurer. The board would select a professional fund manager, which could be a private investment firm or the state's public pension system, to maintain the money.
(Excerpt) Read more at news.yahoo.com ...
Failtrain leaving the station! ALL ABOARD!
Obviously, this will never work. Before long, the 3% will become 6%, then 9%, then 12%, in order to cover administrative costs and to be able to deliver the fund’s guaranteed return...
What a creative way to get a hold of money...Untill They spend that too.
Wonder who will fall for this scheme?
All the pols are gathered round the money spigot waiting for the dollars to start flowing out. That money is already spent.
You haven’t seen riots until this Ponzi scheme falls apart.
House on fire, throw more gas. Yeah, that’s the ticket!
Socialism really is a complete mental disorder. I just can’t believe that educated people can think like this.
Alas, Babylon.
What could possibly go wrong?
smoke mirrors swindle are good words to search for googling this scam.....
lock box? What lock box? It will just get dumped into the general fund.
Piggy bank just begging to get smashed!!!!
Since it's California, maybe not. But there are already many, many state-run retirement plans for various state employees. I'm most familiar with the Louisiana teacher's retirement plan (my mom taught for 40 years and drew full retirement, and my wife was an LSU instructor long enough to qualify, so she gets a small stipend from the fund). I know California has a similar teacher's retirement plan. With perhaps a few exceptions (I am aware of none, but I'm sure some must have problems), they work quite well. And are much more Constitutionally legitimate than Social Security (find SS in the Constition.....not).
It’s a 3% tax that will be used to bail public pensions.
Not only that, but I’m sure that the Illegals will be able to join too. No ID required. And, of course, the payouts will exceed the take-in even if no raiding takes place (which it will). The last few taxpayers in CA are going to walk out wearing nothing but a barrel.
And when the poor reach retirement age and discover the Democrats raided their retirement fund long ago and spent every penny, who will get the blame? Republicans, of course.
Is this the same congress that has never managed to manage anything successfully? This sounds like another tax to me. A tax on poor people because inflation is not stealing money fast enough, yet.
I hope the synaguage of satan can spend all that money before they go to hell
“”This is their way of forcing the private sector to pay for the public sector pension””
Moved out of CA to GA 6 years ago after living and working there for over 50+ years and have never looked back. Hubby was born in L.A and was out of the state only for the military. Tough call to make but you do what you have to do. When you reach the age of 70 and still can’t retire there, it’s time to move on!!!! So we did! We thought it was bad when we left but now? We’d sure be kicking ourselves if we hadn’t made the decision in 2006 to get the heck out!!
california wants to collapse first, and doing so, will get bailed out, leaving nothing for the rest of the moochers.
The California politicians say 3% now, but it will not remain there long. Count on that number to double and more. Donkeys gotta spend and tax because that is what they do.
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