California Starts State Run Retirement System For Everyone
Calwatchdog reports the state legislature is working on starting a state run retirement system for everyone. It looks like contributions to the fund will be made by workers through their employers with an opt out clause for those who don't want to participate.
When you consider the way public emplooyee pensions have come close to bankrupting some cities, I don't think this will end well, although I realize it's not the same thing as the public employee's retirement system. So long as there's an opt out for those preferring to handle their own retirements, one good thing is it gets younger folks to think about their retirement savings early on, when they should.
And, to be fair, it looks as if individual investor's money is all that is at stake here, a least at first glance. The taxpayer's at large would be off the hook, or so we're lead to believe.
Back when I had an individual retirement account (now gone to pay medical bills) I developed an interest in investments and such. I was dismayed to run into people, some a bit older than me that had no idea how to start a retirement account. This might help with that to some extent. If nothing else, it gets the retirement account started for those not knowing how although the reliance on government to guide them is not a good thing.
We'll see how this ends up working, if it gets passed into law. If it turns into a mess, as with other government run retirement programs, you read about it first here.
posted by Fred Mangels @ 9:21 AM
11 comments
11 Comments:
will make it MANDATORY for employers to enroll everyone that works for them ( 5 or more employees )
FORCED ENROLLMENT
thats most mom & pop stores , small hamburger stands that have complained about losing employees cause they cant afford new minimum wages and now the state could force enrollment to take more money away from those employees that cant make enough to live on . oped out is needed as im sure most of those minimum wages earners will do
forced retirement account so calif. can use invested money in their own way
All well and good until it amasses a bunch of money and California decides to repurpose it.
One of the biggest problems of the state retirement system is that employees are required to pay their contribution out of their paycheck while the state, county, or city employer has the option of paying in at a later time thus chronically underfunded the system. Also the use any growth in the underlying investments to lower their contributions.
" and California decides to repurpose itM"
I believe they've done similar things before.
one other thing people forget about PERS is that many don't recieve social security. this is the only retirement they will get. The employee opted for a lower paying job to receive benefits that are not cheap anymore and some sort of stability. they have to pay for medical once they retire out of their own pocket. pers is messed up not because of the employees but because of bad government management and shortsidedness. bashing PERS across the board is a very naive and uneducated path to take. every government entity in the state runs their PERS different. some dont even pay disability
Everyone is not equal to the sum total of workers.
Since workers are outnumbered by everyone, once again robbing Peyer to PAY OFF PAUL.
Paul don't work, Paul don't pay into the fund, therefore Paul is a piece of shit if he accepts one penny from the fund that piece of shit politicians set up.
Fred, did you give permission to the State to be a part of this fund? HOJ did not, and shall never be permissive of such social engineering scams.
Fend for yourself mutha fuckas, and quit stealing from other people's lives......
Everyone is not equal to the sum total of workers.
Since workers are outnumbered by everyone, once again robbing Peyer to PAY OFF PAUL.
Paul don't work, Paul don't pay into the fund, therefore Paul is a piece of shit if he accepts one penny from the fund that piece of shit politicians set up.
Fred, did you give permission to the State to be a part of this fund? HOJ did not, and shall never be permissive of such social engineering scams.
Fend for yourself mutha fuckas, and quit stealing from other people's lives......
Just because you pay your contributions through the employer at the time the employer is forced to be the middle person shill for gubbamint, does not mean the stolen personal property (labor converted to cash) is immediately saved or invested, etc.....it is spent. So basically, it is a double underfunding that can't be audited accurately for future payout liabilities.
For once, I agree with most of the commenters rather than with you Fred.
The govts are illegally, unconstitutionally, in charge of education, yet students aren't taught the basics of opening savings & retirement thing-a-ma-jigs? See how this works?
Abolish the dept of education before the dept of education abolishes you.
It's good that people can opt out. It sounds good in theory, but it also sounds like responsible people could end up paying for those who aren't. It would be good if financial education was taught in school, maybe it would help. Parents should be the ones to educate their children about fiscal responsibilities, although if they don't, or can't, the school could. The school education would also reinforce the parents home education. At my jobs I always try to encourage the young people to start saving now, so they can have a secure future.
Back in time, before alysnky took us on a wonderland whirl, the citizens banked their extra income which collected interest. They would then retire & live contendedly off the interest, especially if they owned their own home outright.
Now we are forced by armed robbers to give it to the govt so the govt can collect the interest, raise inflation which is another tax, plus tax our homes so that we are never free & clear for retirement. Funny how that works. It's called slavery in many parts of the world.
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