California’s “Secure Choice” program is neither secure nor a choice

retirement_road_signCalifornia’s “Secure Choice” program sounds harmless enough: A voluntary program — at least for now — that would enroll private sector employees who currently don’t have a retirement plan into a state-run retirement savings account.

When the initial program was announced in 2012 with authorizing legislation, taxpayers were skeptical. Now that the program is even closer to fruition, there is greater reason to be concerned. The good news, however, is that the U.S. Congress is now threatening to pull the plug on this foolish endeavor.

The first question is why is this program even needed? While many public employees don’t pay into Social Security (most receive generous public retirement benefits instead) workers in the private sector do receive Social Security. One might complain that Social Security benefits are inadequate but, because the program is backed by the federal government (which has the power to print money) the benefits promised are almost certain to be forthcoming. Not only that, under federal law, there are many programs to assist private-sector workers whose employers don’t offer 401(k) or other employer-based plans. These include individual retirement accounts, both traditional and Roth IRAs. For workers without an employer retirement plan, there are generous limits on how much can be saved tax deferred.

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Comments

  1. Stephanie Hart says

    This is a money grab, pure and simple. There will be no “lock box” and the money collected will go directly to public employee pensions. This is all about funding pensions. These clowns can’t balance their own budget and now they want to be in charge of someone else’s. Rich.

  2. retiredxlr8r says

    Our one party rule is seeking another revenue stream.
    Based on California’s debt and her in-assimilated diversity she doesn’t have long to live.
    And, considering the incompetents in Sacramento they see no way to manage their current revenue stream, or a way to deal with a debt they created, and now they have this infrastructure problem that is really the result of past miss management.
    I.E., look at any city, county, state, or even our nation, when Democrats rule our world, America, declines through diversity and debt.
    Hang on Californian’s it will be an expensive ride their will be more taxing, for roads, dam repair (probably not new ones), schools, bridges, you name it, California has neglected it!

  3. They are clowns ===no crooks! The have shown that NO ONE IS HELD ACCOUNTABLE, THAT your money will not be locked away for you–and look what the liberals have done to the INFRASTRUCTURE OF CA????
    How do you like the tumble-down quality that this state is? Jerry Brown and his spend it on the things we DO NOT NEED –HAS aided the sharia factor in DESTROYING AS MUCH OF CA. as possible up to this date. Yeah–plenty pissed off–how about you?

  4. I don’t trust the Government or the State to keep our money safe! Just look what has happened to OUR Social Security for example!!!

  5. Victoria Smith says

    The last thing we need is another government controlled retirement plan. We have seen how “well” social security has (not) worked.

  6. askeptic says

    Just another step towards all jobs being controlled by The State…..
    “From each according to his ability, to each according to his needs, Komrade!”

  7. You just have to wonder about the I.Q. of the average Democrat legislator.. Is this scheme a pure “money grab” or just plain moronic?

  8. Concerning “Secure Choice” funds collected by the state. This is nothing more than a cheap interest loan(?) to the State of California. Compare it to a Ponzi scheme. If a life insurance company had all of it’s customers die at the same time there would be no life insurance companies. In the same vein, not every one in the state fund is going to retire at the same time and draw out their money.These funds will pay an interest rate of under 1% so all it is is a cheap source of money for the money grabbers more commonly known as state government in this particular instance. Do you think the Democrats in state government are actually going to do something for you? HA AND HA!

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