Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California creates state-run private retirement plan (6 million lower-income workers to pay 3%)
Yahoo ^ | 9/28/12 | JUDY LIN

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 ...


TOPICS: Crime/Corruption; Extended News; Government; News/Current Events
KEYWORDS: california; pensions; privateretirement
And if you can't pay for Commiecare™, well, let's just say that you will pay for Commiecare™. Oh, and if its state-run, it ain't private.

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.

1 posted on 09/29/2012 2:14:29 PM PDT by Libloather
[ Post Reply | Private Reply | View Replies]

To: Libloather

Yeah, this’ll work. [Chortle, snort]


2 posted on 09/29/2012 2:18:14 PM PDT by rbg81
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

Reason 618 to run away from Cali.


3 posted on 09/29/2012 2:20:50 PM PDT by upchuck (I miss my dog Snoopy. May 16, 1997-September 24, 2012 -- 15 years, 4 months. Forever in my heart.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

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.


4 posted on 09/29/2012 2:22:22 PM PDT by The Working Man
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

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.


5 posted on 09/29/2012 2:24:45 PM PDT by rainee
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

“”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!!!


6 posted on 09/29/2012 2:27:59 PM PDT by Thank You Rush
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

I am sure this will work and then they can make it national too


7 posted on 09/29/2012 2:32:34 PM PDT by GeronL (http://asspos.blogspot.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

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?


8 posted on 09/29/2012 2:33:14 PM PDT by MasterGunner01
[ Post Reply | Private Reply | To 1 | View Replies]

To: Thank You Rush

This is their way of forcing the private sector to pay for the public sector pension


9 posted on 09/29/2012 2:34:11 PM PDT by GeronL (http://asspos.blogspot.com)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Libloather
So...

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.

10 posted on 09/29/2012 2:34:19 PM PDT by going hot (Happiness is a momma deuce)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather
Participants would also have to sign a liability waiver stating that California would not be liable for losses.
11 posted on 09/29/2012 2:36:30 PM PDT by Snickering Hound
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

State run is the opposite of private.


12 posted on 09/29/2012 2:47:01 PM PDT by SeeSharp
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

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....


13 posted on 09/29/2012 2:48:27 PM PDT by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GeronL

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.


14 posted on 09/29/2012 2:58:41 PM PDT by buwaya
[ Post Reply | Private Reply | To 9 | View Replies]

To: EGPWS

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!!!


15 posted on 09/29/2012 3:02:50 PM PDT by ronnie raygun (bb)
[ Post Reply | Private Reply | To 13 | View Replies]

To: GeronL

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.


16 posted on 09/29/2012 3:05:32 PM PDT by buwaya
[ Post Reply | Private Reply | To 9 | View Replies]

To: Libloather
CalPERS could create a separate account for private-sector workers, although it's more likely to pool investments with public employees.

LOL! Ya, right. That money will become part of the General Fund ASAP.

17 posted on 09/29/2012 3:05:43 PM PDT by VeniVidiVici (Congrats to Ted Kennedy! He's been sober for two years now!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

“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.


18 posted on 09/29/2012 3:08:28 PM PDT by Selene
[ Post Reply | Private Reply | To 1 | View Replies]

To: Selene

Employers will direct their ass right out of the state.


19 posted on 09/29/2012 3:13:12 PM PDT by eyedigress ((zOld storm chaser from the west)/?)
[ Post Reply | Private Reply | To 18 | View Replies]

To: Libloather
Can't anybody do this right now? Without the government's "help?" I mean, put 3% of your pay into a stock fund or something.

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

20 posted on 09/29/2012 3:15:53 PM PDT by BfloGuy (Without economic freedom, no other form of freedom can have material meaning.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather
The program directs employers to withhold 3 percent of their workers' pay...

The thief who sticks a gun in your face and demands your wallet has more honor and integrity than these pukes. Seriously Jerry, just get prostate cancer or something.
21 posted on 09/29/2012 3:20:33 PM PDT by SpaceBar
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

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...


22 posted on 09/29/2012 3:32:57 PM PDT by dinodino
[ Post Reply | Private Reply | To 1 | View Replies]

To: rbg81
Anybody in Vagas taking bets on how many months before the State raids that fund?
23 posted on 09/29/2012 3:38:25 PM PDT by fella ("As it was before Noah, so shall it be again,)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Libloather

What a creative way to get a hold of money...Untill They spend that too.

Wonder who will fall for this scheme?


24 posted on 09/29/2012 3:38:25 PM PDT by HollyB
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

All the pols are gathered round the money spigot waiting for the dollars to start flowing out. That money is already spent.


25 posted on 09/29/2012 3:42:18 PM PDT by moovova (Hey buddy, can you spare a tagline?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

You haven’t seen riots until this Ponzi scheme falls apart.

House on fire, throw more gas. Yeah, that’s the ticket!


26 posted on 09/29/2012 3:43:15 PM PDT by ConradofMontferrat (According to mudslimz, my handle is a Hate Crime. I just Hope they don't like it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

Socialism really is a complete mental disorder. I just can’t believe that educated people can think like this.

Alas, Babylon.


27 posted on 09/29/2012 3:46:14 PM PDT by ConradofMontferrat (According to mudslimz, my handle is a Hate Crime. I just Hope they don't like it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

What could possibly go wrong?


28 posted on 09/29/2012 3:47:58 PM PDT by Auntie Mame (Fear not tomorrow. God is already there.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

smoke mirrors swindle are good words to search for googling this scam.....


29 posted on 09/29/2012 3:58:38 PM PDT by ptsal (E)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rbg81

lock box? What lock box? It will just get dumped into the general fund.

Piggy bank just begging to get smashed!!!!


30 posted on 09/29/2012 3:58:54 PM PDT by Kolath
[ Post Reply | Private Reply | To 2 | View Replies]

To: rbg81
"Yeah, this’ll work. [Chortle, snort]

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).

31 posted on 09/29/2012 4:03:49 PM PDT by Wonder Warthog
[ Post Reply | Private Reply | To 2 | View Replies]

To: Libloather

It’s a 3% tax that will be used to bail public pensions.


32 posted on 09/29/2012 4:06:26 PM PDT by glorgau
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kolath

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.


33 posted on 09/29/2012 4:10:19 PM PDT by rbg81
[ Post Reply | Private Reply | To 30 | View Replies]

To: Libloather

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.


34 posted on 09/29/2012 4:19:25 PM PDT by LibWhacker
[ Post Reply | Private Reply | To 1 | View Replies]

To: Libloather

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


35 posted on 09/29/2012 4:33:50 PM PDT by winodog
[ Post Reply | Private Reply | To 1 | View Replies]

To: GeronL

“”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!!


36 posted on 09/29/2012 5:24:18 PM PDT by Thank You Rush
[ Post Reply | Private Reply | To 9 | View Replies]

To: Libloather

california wants to collapse first, and doing so, will get bailed out, leaving nothing for the rest of the moochers.


37 posted on 09/29/2012 5:26:58 PM PDT by King Moonracer (Bad lighting and cheap fabric, that's how you sell clothing.....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MasterGunner01
Don't overlook that they will force employers to donate 3% of wages into it also.
38 posted on 09/29/2012 8:33:20 PM PDT by hinckley buzzard
[ Post Reply | Private Reply | To 8 | View Replies]

To: hinckley buzzard

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.


39 posted on 09/29/2012 8:53:05 PM PDT by MasterGunner01
[ Post Reply | Private Reply | To 38 | View Replies]

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson