Posted by Edward Ring at 12:12 am on Apr 12, 2016 Comments Off on Sacramento’s “Secure Choice” Pooled 401K – Too Frugal for Public Workers
In a move of breathtaking hypocrisy, California’s legislators
have unveiled a financially sustainable retirement security program
for private workers, while keeping financially unsustainable
pensions forpublic workers.
What private sector employers and private sector workers need to
ask, more than anything, is if this new retirement security scheme
is so great, why aren’t public employees going to also adopt
it?
That’s a really good question. And the answer is simple:
The pensions they’re already getting, paid for by taxpayers,
are far. far better. Way better. Out of this world better. Crazy
better. Goofy better.
Take a look at theofficial
recommendationsmade on March 28, 2016 to the California
Legislature. In this document, on page 53, there is a table showing
“income replacement” based on years paying into the system at
various contribution rates. At a contribution rate of 5%, after
working 30 years, a participant can expect income replacement in
retirement of 13.8%. That is, if they made $100,000 per year in… Read More