You know the best people, possible, to run your retirement plan?

[ark steel]

Why, the State of California!!!

http://asppa-net.org/News/Article/ArticleID/6111

As originally envisioned, all employers with five or more workers in California that don’t already offer a retirement plan would be required to automatically enroll their employees in the state-sponsored Secure Choice plan.


The board recommended that legislation establish managed accounts that would be invested in U.S. Treasuries or similarly safe investments for the first three years of the program.

Rather than have the government take over your 401(k) by fiat, they can set it up so that your employer is enticed to stop providing it, which then puts you into a state run plan! Yay!

 

[oneforthebus]

Why, the State of California!!!

http://asppa-net.org/News/Article/ArticleID/6111



Rather than have the government take over your 401(k) by fiat, they can set it up so that your employer is enticed to stop providing it, which then puts you into a state run plan! Yay!

No, I want my retirement run by the feds!

http://www.independentsentinel.com/...government-seizes-private-retirement-savings/

 

[Troglodyte]

Haven't most stopped providing retirement plans already? Or at least matching contributions?

 

[ark steel]

Haven't most stopped providing retirement plans already? Or at least matching contributions?

Most companies have stopped providing pension plans, but a ****-ton provide 401(k) Plans. I presume that, if you sponsor a 401(k) plan (with or without employer match or profit sharing contributions), you would be exempt from the requirement to join this spectacular plan. I didn't read it all, just noticed that it said it would be Roth contributions rather than tax deferred contributions. Requirements to start at 5% and go up to 10%! How many people can afford to defer 10%? Are those people going to get state contributions or "rebates" for their "deferrals". There are already (I think still in effect) some Saver's credits on Federal tax that would get the some of the money back to the low income people. I'd guess not a large percentage of people eligible for the Savers credit actually take part in a plan, so this should spike up that federal expenditure quite a bit.

Overall, I can't see this as anything other than another boondoggle in any state or at the federal level.

 

[DBS1970]

Most companies have stopped providing pension plans, but a ****-ton provide 401(k) Plans. I presume that, if you sponsor a 401(k) plan (with or without employer match or profit sharing contributions), you would be exempt from the requirement to join this spectacular plan. I didn't read it all, just noticed that it said it would be Roth contributions rather than tax deferred contributions. Requirements to start at 5% and go up to 10%! How many people can afford to defer 10%? Are those people going to get state contributions or "rebates" for their "deferrals". There are already (I think still in effect) some Saver's credits on Federal tax that would get the some of the money back to the low income people. I'd guess not a large percentage of people eligible for the Savers credit actually take part in a plan, so this should spike up that federal expenditure quite a bit.

Overall, I can't see this as anything other than another boondoggle in any state or at the federal level.

And of course the state will "borrow" from the plan it administers like FedGov inc "borrows" from the retirement plan it administers.

 

[oneforthebus]

And of course the state will "borrow" from the plan it administers like FedGov inc "borrows" from the retirement plan it administers.

Yep, there's a huge pile of money in private retirement plans and the government is itching to get hold of it. I can hear "the super rich don't need all that money for retirement, some of it should go the poor" now.

 

[Superman]

they can borrow from it, then loan it out to private citizens and put a higher interest rate on it than they're borrowing.

Fed borrows at 0%
Fed loans at 4.29%

so you're paying to use your own ******* money.

 

[Steelin]

Why, the State of California!!!

http://asppa-net.org/News/Article/ArticleID/6111



Rather than have the government take over your 401(k) by fiat, they can set it up so that your employer is enticed to stop providing it, which then puts you into a state run plan! Yay!

Sounds like Obamacare on steroids. My company went from a defined benefit to a matching 401 K plan. The defined benefit plans are definitely a public sector goody at this point.

 

[ark steel]

And of course the state will "borrow" from the plan it administers like FedGov inc "borrows" from the retirement plan it administers.

You've GOT to be kidding!!!!:!?!!!?!?>

 

[tapeANaspirin2it]

When Obamacare denies your treatments and just tells grandma to take the pill, they won't need a retirement plan.

 

[Troglodyte]

I can hear "the super rich don't need all that money for retirement, some of it should go the poor" now.

I'm waiting for when they decide social security should be means based and if you were "wealthy" enough to save for retirement, you don't need social security, or much of it.

 

[oneforthebus]

I'm waiting for when they decide social security should be means based and if you were "wealthy" enough to save for retirement, you don't need social security, or much of it.

Oh that's definitely coming. Along with raising or eliminating the contribution ceiling.

 

[hamster]

The wolves are sniffing around the hen house. The public is a bunch of low info zombies, watching DWTS, eating pork rinds. Most do not contribute anyway,so wtf.
We were once great.
We have sunk so low.

 

[DBS1970]

You've GOT to be kidding!!!!:!?!!!?!?>

Yeah you know take the money out of the account and issue special "bonds" to cover it.