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California Watch
Golden State Rolls Out Private Sector Retirement Plan
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  • Dale Fayda

    Sounds like yet another slush fund for the CA Democrats. The money is confiscated from virtually ALL private sector employees to be disposed of as the Sacramento bureaucrats see fit. Just like the Social Security General Fund, this money will be used to prop up the failed welfare state.

    • Andrew Allison

      I fear that it’s intended to prop up the failing public pension plans (the government employee welfare state).

  • QET

    It is to be expected that the allowable range of investment options will be strictly (at first, trending toward suffocatingly) circumscribed by the modern Left-liberal political consciousness. Funds whose portfolios include firms without a prescribed ratio of black and trans officers and directors? Right out. Funds whose portfolios include firms who power their facilities with anything other than solar and wind? Not a chance. Funds whose portfolios include firms who have operations in, or source materials or labor in, Africa or Central America? No friggin way!

    And of course, just as truth will out, graft will in. Consider the aforementioned criteria. How long before some enterprising and politically connected blacks, trans, enviros etc. form companies whose mission it is to “certify” compliance of a fund’s portfolio investments with all of the various political requirements? For a fee, of course. So basically, the investment funds allowed in the plan will bribe these companies to give them official seals of compliance with political correctness. And the cost of those bribes, which will increase year to year, will be recovered in the form of additional fees to the plan participants.

    Also, how long before California pols and bureaucrats start to form their own “funds” and get them included in the plan, so they can collect those investment fees?.

    Yeah, this is going to turn out well.

  • Trajan Fanzine

    In Lala land, if Social sec. is a disaster, double down…..

  • Tom Scharf

    This is better than letting a lot of people slide into retirement with nothing at all.

    Obviously managing this fund will be a very lucrative for some companies so the selection will be political. I would worry about maintaining a strict firewall between public and private sector accounts. The public sector will need a bailout eventually and I wouldn’t want my money in an account controlled by the state when that time comes around.

    Also I would be worried about a state budget crunch causing the state to “borrow” from this fund, as the feds did with the SS trust fund. No pot of money is safe when a budget crisis occurs.

    While it is better than nothing, It would be wise to opt out and invest directly instead.

    • Andrew Allison

      You have obviously forgotten the nine most terrifying words in the English language.

  • Ann in L.A.

    As we’ve had talk about the government seizing IRA’s and 401K’s, this money would also not be secure from government take-over. If California decides that using the money for something else is more important than your retirement, then poof. At least, if your money is under your control they can’t make it disappear quite so easily.

  • Andrew Allison

    Is TAI completely out of its collective mind? Having frequently inveighed against the outright fraud rampant in public, i.e., State-managed, pensions scams, er schemes, you think that turning over private pensions to the State is a good idea? GMA*B!

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