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Calif May Force Workers To Save For Retirement

From Fox News:

California tries to mandate retirement savings for private workers

By Lee Ross | July 25, 2013

… California lawmakers are pushing a controversial, first-in-the-nation plan that would require private-sector employers to remove 3 percent from every worker’s paycheck. The money would go into a new state fund with a guarantee that all withheld funds plus investment gains will be available for distribution at retirement age.

Gee, what a great way for California to get hold of more money. All the while pretending to be doing it for its residents’ own good.

The idea behind the Secure Choice Retirement Savings Program, which got preliminary approval, is for it to be a state-run supplement to Social Security, but only for people who don’t have traditional workplace retirement plans.

For an estimated 6 million working Californians, the benefit of a pension or 401(k) is out of reach — so state lawmakers are trying to implement the new mandatory retirement fund for private sector workers.

Hey, if it is constitutional to require people to buy health insurance, then this is probably consitutional, too.

But critics wonder how the state with a turbulent record of budget keeping and a much-ridiculed public worker pension system can be counted on to protect people’s money…

If there is one thing that we have learned over the years, and especially the last few months, it’s that you can certainly trust the government. At all levels.

Employers who don’t conscript workers into the program are subject to fines – 

Gee, yet another source of revenue for the state.

[T] though they will not have to provide any matching funds…

Don’t worry. That will be the next shoe to drop.

The California plan is the first in the nation, though other states have expressed interest as well as lawmakers in Washington. Before Secure Choice can go into effect, it must get approval from the IRS and U.S. Labor Department…

Which is a laugh. The Obama administration is probably kicking itself that they didn’t come up with this idea first.

This article was posted by Steve on Friday, July 26th, 2013. Comments are currently closed.

5 Responses to “Calif May Force Workers To Save For Retirement”

  1. GetBackJack says:

    The greatest danger to Man is government

  2. Noyzmakr says:

    Let me get this straight. They plan on taking 3% of salaries away from people who can least afford it, otherwise they’d be those who already have traditional workplace retirement plans, and keep this money from them for 30, 40 or 50 years. These people are already struggling with all the high rent, taxes, fees and food prices that California has dumped on them.

    You’ll be able to hear the exodus of job creators. What did Perot say? A giant sucking sound.

  3. Ukiah says:

    Wow, sounds an awful lot like Social Security and… how’s that doing these days?

    And really they want to force private sector workers to save? Those are the folks who know they’re on their own. The public sector seems to be the ones who should be saving but think the government has them covered… though as with Detroit, that’s hardly secure.

  4. bousquem25 says:

    I wonder how many milliseconds it will take for the state goverment to begin raiding that retirement fund and replacing the money with IOU slips like what happened with social security.

    I also have to wonder when the state will decide that some of the poor will be exempted from contributing but will still recieve increased benefits from those who have to pay in, more wealth redistribution.

    What is also going to happen when people die after contributing but are too young to pull the money out? Is the state going to distribute the money to the person’s estate or is the money just going to be redistributed to those still in the program while the person’s estate/family gets a big screw you from the state.

    • Noyzmakr says:

      I think you have it right. Califonian liberals just won’t be able to resist all that money and you know the ‘community organizers’ will be lobbying for the ‘poor’ to pay nothing. It will just be another giant redistibution Ponzi scheme as you described. But they’ll do it, just watch. And the companies will continue to flee.

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