HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Places » U.S. » California (Group) » Pensions now available to...

Thu Sep 29, 2016, 02:41 PM

Pensions now available to all workers in CA

Saying it offers the promise of retirement security for millions of Californians, Gov. Jerry Brown signed sweeping legislation Thursday that creates a state-managed savings program for private-sector workers without one.

The Democratic governor told a roomful of supporters that the California Secure Choice Retirement Savings Program is “very important in today’s age of spend now, worry about it later.”

...

Experts estimate that almost one-half of middle-income workers are at risk of falling into poverty when they retire. Monthly checks from the federal Social Security program increasingly fall short of covering seniors’ costs in retirement.

The Secure Choice program, supporters say, would take advantage of economies of scale to automatically put a share of workers’ wages into a retirement fund at low cost, unless they opt out. Proponents said it offers the most significant enhancement of retirement security since federal lawmakers approved Social Security during the Great Depression of the 1930s.

Read more here: http://www.sacbee.com/news/politics-government/capitol-alert/article104911716.html#storylink=cpy

6 replies, 1236 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 6 replies Author Time Post
Reply Pensions now available to all workers in CA (Original post)
SunSeeker Sep 2016 OP
BlueCaliDem Sep 2016 #1
SunSeeker Sep 2016 #2
winetourdriver Sep 2016 #3
SunSeeker Sep 2016 #4
Travis_0004 Sep 2016 #5
SunSeeker Sep 2016 #6

Response to SunSeeker (Original post)

Thu Sep 29, 2016, 03:00 PM

1. This sounds promising! eom

Reply to this post

Back to top Alert abuse Link here Permalink


Response to BlueCaliDem (Reply #1)

Thu Sep 29, 2016, 03:04 PM

2. Yes indeed. It will spur entrepreneurship, just like the ACA did.

If people don't feel compelled to stick to a particular job because it provides a pension and health coverage, they are more apt to start a small business.

It will create jobs and reduce poverty.


Reply to this post

Back to top Alert abuse Link here Permalink


Response to SunSeeker (Reply #2)

Thu Sep 29, 2016, 03:07 PM

3. Ca.

God I love this state, can you imagine if the whole nation were this progressive?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to winetourdriver (Reply #3)

Thu Sep 29, 2016, 03:10 PM

4. We set the example, hopefully others will follow.

Meanwhile, Sam Brownback's Kansas is showing what NOT to do.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to SunSeeker (Reply #2)

Thu Sep 29, 2016, 03:52 PM

5. why couldnt they have started a small business with an IRA or SEP 401k before?

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Travis_0004 (Reply #5)

Thu Sep 29, 2016, 04:28 PM

6. These state-managed pensions offer much better deals than individual IRAs.

It allows workers to take advantage of economies of scale to allow lower fees and to get a substantial pension, as opposed to the skimpy payments of an individual IRA. This state plan, Secure Choice, would yield about one-fifth of the person's pre-retirement income by the time the person retires.

51% of California workers (7.5 million people) have no access to an employer-sponsored retirement plan, not even a shitty, no-employer-contribution 401k.
http://www.sacbee.com/news/politics-government/article68342897.html

Plus, it would auto-enroll workers; they would have to opt out to not get it. This addresses the problem of people failing to save for retirement or being daunted by paperwork.

This is a huge improvement in the lives of workers.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread