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 ...
NYT - 9/22/12 - California Takes On the Retirement Crisis
One of the advantages of the plan is that pooled contributions and professional management would reduce administrative costs and investing mistakes, which would boost returns beyond what most 401(k) investors achieve on their own.
The plan also calls for a guaranteed minimum return, via private insurance and reserves. That would be expensive, so the guarantee would likely be very modest, but it would ensure that all participants ended up with something, without requiring taxpayers to incur the risk of making good on investments gone bad.
Yeah, this’ll work. [Chortle, snort]
Reason 618 to run away from Cali.
Run! Don’t walk away from this one.
It’s a sort of Mandatory, sort of optional thing ya’know. You get a chance to opt out every two years. How generous of them.
Says the board will choose a private manage or the state pension system..
No way they’ll choose private, this is just another ponzi scheme to prop up the hugely underfunded PEU system.
“”first state-administered retirement savings program for private-sector workers””
AND just why are they worried about the “private sector?” They have enough problems with their state worker’s retirement fund....
BAD BAD IDEA!!!
I am sure this will work and then they can make it national too
So, let’s see if I got this right: California is going to setup a retirement plan for low income workers (and illegal aliens), in a state that’s driving out business and productive workers, in a state that’s billions in debt, a state that has underfunded its public employee pensions that it cannot have a hope of paying, and put together by an assembly and governor that can’t stop taxing and spending? What could possibly go wrong?
This is their way of forcing the private sector to pay for the public sector pension
You send in an amount, a small amount mind you, for the state to hold for you, only until you retire, where then they give it back. No doubt, in a locked box the whole time, with steinberg's and brown's fingermittens off of the stash, yeah, sounds invincible!
Got's to admit, they are getting creative in ways to get your money siphoned and funneled out of your pocket.
State run is the opposite of private.
Good, then the state will control your retirement so you better tow the government line and do as you are told by government, like eating properly and voting properly....
You got it.
And since it STARTS collecting soon but defers benefits for later, well, live for the day and all that. All the politicians will be retired or dead before it collapses.
For now it will be just another payroll tax to put off the day of reckoning.
And when your ready to retire they will dictate what you will recieve every month, they will entice you in the begining on how much you will recieve when you retire but we all know you will recieve a below the poverty line state check with an excuse for irresponsible spending on their part. Criminal politicians looking for new ways to f you and save thier a##es in the short term. We need to purge!!!
You got it.
And since it STARTS collecting soon but defers benefits for later, well, live for the day and all that. All the politicians will be retired or dead before it collapses.
For now it will be just another payroll tax to put off the day of reckoning.
LOL! Ya, right. That money will become part of the General Fund ASAP.
“The program directs employers”
What happens if the employer does not follow the directive?
How long until the “program” directs a matching contribution?
Many details missing.
Employers will direct their ass right out of the state.
Oh, I get it. This is a pension plan for morons.
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