With a Bankrupt California Democrats now want to "manage" a brand new pension plan for over 6,000,000 private sector workers
- But it gets better, the state (taxpayers) will guarantee a good return for the retirement plan.
- This new infusion of "investment" money could be used to prop up the failing CalPERS retirement fund.
The Marxist insanity of the People's Republic of California never ends.
Even though the state has been bankrupted by the political hacks, legislation designed to pave the way for a brand new retirement plan for millions of California private-sector workers was signed into law Friday by Comrade Governor Jerry Brown.
The goal is to create a savings program in which workers who have no access to a pension can count on a guaranteed rate of return for contributing about 3 percent of their salary.
Just take a guess who will "guarantee" that rate of return promised by Big Government hacks. Yep, the taxpayers.
The voluntary retirement plan targets an estimated 6.3 million private-sector workers in California who have no pension plan.
Unlike a public pension, the program would guarantee participants a minimal rate of return for contributions made via payroll deduction. Democrats contend that neither the state nor private businesses would incur risk. Returns would be assured by private insurance underwriters. . . . . yeah, right. Private underwriters are going to "guarantee" results. With what magic money are they planning to do this?
GOP State Senator Mimi Walters (Orange County) called SB1234 the worst bill to leave the legislature this year because it would allow the failing state pension system to invest the money.
"SB1234 looks like nothing more than a cynical effort to prop up the floundering public employee pension debt with new funds from private investors," Walters wrote.
CalPERS posted a tiny 1% return in 2011 missing their own target of a 7.5% return.
Money would be pooled in a state-administered fund that would be managed and invested.
Critics say there are plenty of retirement investment programs on the market now and that the state has no business tackling the issue at a time when its pension system for public workers is underfunded by billions of dollars.
|Maybe California can start printing magic money to cover|
the insane spending of the politicians.