You really have to admire California and their "go for it" attitude! They haven't figured out how to secure their massive public pension finances, and they want to create a new private pension trust. Good luck!
As the nation debates public health care and governments grapple with public employee pension obligations, California may be on the verge of a new entitlement — state-sponsored retirements for private workers.
Senate Bill 1234, known as the “Golden State Retirement Savings Trust Act,” would create a state system that all California companies larger than five employees would be required to join if they lack a private retirement program.
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
I do admire them. I have no idea how they'll pay for it in the long run. But maybe they can protect their citizens from vulture-capitalists like RMoney and Bain who come in and put a companiy's trust funds in their pockets and dump the employees on the street. "Compassionate Conservatism" is a b*tch.
If you don't know how they plan to pay for it, you didn't read the article. They will pay for it by taxing those enrolled in the program 3% of their earnings and have employers withhold it from their paychecks just like the federal government is taxing them and having employers collect and remit that tax to fund Social Security and Medicare benefits for current retirees.
If it got California workers out of the federal program the way the public sector plan gets public sector workers out of such a miserable federal system I would say that California was onto something good. They just need to expand the thinking a little more to get to that point. A good start though, just needs to be developed a bit further.
