[JayCT]

The state is considering offering a Public Retirement option for private company employees. A study conducted by the state shows the plan could become fully self-sufficient in 2 years and offer private sector employees the security of a retirement income that is not available in 401k or other plans. Connecticut is the first state to consider doing this. Thoughts? Jay

Report: Public retirement for private-sector workers feasible | HartfordBusiness.com

[Wilton2ParkAve]

Originally Posted by JayCT

The state is considering offering a Public Retirement option for private company employees. A study conducted by the state shows the plan could become fully self-sufficient in 2 years and offer private sector employees the security of a retirement income that is not available in 401k or other plans. Connecticut is the first state to consider doing this. Thoughts? Jay

Report: Public retirement for private-sector workers feasible | HartfordBusiness.com

Simply a smoke screen for publicity--- why would we ever get comfortable with being responsible the retirement of additional workers when we remain insolvent w/r/t state employees? We continue to maintain the second largest underfunded pension and retiree healthcare obligations in the nation (52% unfunded!!!).

[JayCT]

Originally Posted by Wilton2ParkAve

Simply a smoke screen for publicity--- why would we ever get comfortable with being responsible the retirement of additional workers when we remain insolvent w/r/t state employees? We continue to maintain the second largest underfunded pension and retiree healthcare obligations in the nation (52% unfunded!!!).

I knew someone would question that. I wonder if this could be used as a way to bring down the cost of the existing public system? Jay

[Mr_250]

I see how "well" the state is doing with their own money. No way on this earth I would let them run my retirement account.

I'd rather give darts to an ape and have him hit tickers on a wall and invest in those over entrusting the state of CT to make me money in the long run.

How about let people be adults and if they want a Roth or Ira they can sign up themselves?

They want to retire let them start savings at a young age, if they don't, ooo well.

[RunD1987]

I don't know how the state could afford this

[CTDex]

Originally Posted by RunD1987

I don't know how the state could afford this

They can't.


Ridiculous idea.

[AMSS]

Originally Posted by JayCT

I knew someone would question that. I wonder if this could be used as a way to bring down the cost of the existing public system? Jay

The public pension fund is contantly raided so more people joining in would likely be helpful.

[MrGompers]

I don't think it's a bad idea, but the article doesn't make clear where the initial $1 billion comes from. I would assume the state. Then they later expect to recover that initial $1 billion via enrollments in the program. Then they would administer the program thereby creating new expenses and new employees.

This program would be better managed most likely by a current money manager/mutual fund company such as Vanguard. They already have the employees and systems in place. I'm sure they could run it better than a state Govt. Especially, when you consider the expense of creating a whole new system to run something like this.

If the program is implemented and becomes popular. I would be afraid that employers would no longer offer 401k plans though.

[CTDex]

Originally Posted by MrGompers

I don't think it's a bad idea, but the article doesn't make clear where the initial $1 billion comes from. I would assume the state. Then they later expect to recover that initial $1 billion via enrollments in the program. Then they would administer the program thereby creating new expenses and new employees.

This program would be better managed most likely by a current money manager/mutual fund company such as Vanguard. They already have the employees and systems in place. I'm sure they could run it better than a state Govt. Especially, when you consider the expense of creating a whole new system to run something like this.

If the program is implemented and becomes popular. I would be afraid that employers would no longer offer 401k plans though.

The state doesn't need to get involved in the active money management of private employees. There are programs in place for that.


It won't create any more jobs that are already being created (more efficiently) by wealth management firms.


We don't need more state employees.

[RunD1987]

I am for it if they can pay for it while lowering taxes