Calif. Lawmaker Wants to Privatize State Pensions

[papau]

http://www.nytimes.com/reuters/politics/politics-funds-california.html

December 5, 2004
Calif. Lawmaker Wants to Privatize State Pensions
By REUTERS

Filed at 5:13 p.m. ET

LOS ANGELES (Reuters) - Hoping to stem a tide of rising pension debt, a California legislator will propose a controversial overhaul on Monday that would convert traditional public employee retirement plans to privately managed 401(k)-style plans, the Los Angeles Times reported on Sunday.

Under the proposal, employees hired after July 1, 2007 would be enrolled in a new contribution plan. The proposal is expected to meet stiff opposition from public employee unions.

Union leaders have said the proposal, by California assemblyman Keith Richman (R-Northridge), would make pensions less secure and could leave retirees with insufficient income in their old age, the Times said.<snip>


Under the new proposal, new hires would automatically be enrolled in retirement plans in which private fund managers, for a fee, would help employees manage their own portfolios.

Because the bill would amend California's constitution, it would be subject to approval by voters.

[bullimiami]

1. How did I know this guy was going to be a Republican?

Its all about someone making a profit from everything. And there is never any oversight or accountability. When they are found to be crooks it is too late and the pensioners lose.

It should be MANDATORY for ALL pensions to be fully funded and either in Joint or Full control of the pensioners. It is sickening that this has been a profit center for governments and businesses and used as a reserve bank account only to be lost through bad fortune, incompetence or embezzelment.

THIS IS OUR MONEY, NOT THEIRS. It is not some sort of charity, it is earned every day.

[papau]

2. true

:-)