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?
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....
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.
Oh, I get it. This is a pension plan for morons.
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.