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Old 05-23-2014, 03:23 PM
 
Location: Baltimore, MD
3,746 posts, read 4,224,664 times
Reputation: 6866

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Quote:
Originally Posted by HappyTexan View Post
California passed their law in 2012 and hope they can implement it in 2015.
So far they have not gotten approval from the Fed on this.
12 other states are in the process of doing the same thing.

The payroll deduction goes to the state Treasury.
A board appointed by the state legislature will decide on the investments for that money.
It's supposed to be no cost or obligation at all to employers except to set up the payroll deduction.
I was referring to the Illinois legislation only. Here's a relevant snip from the horse's mouth.

"Establishes the Illinois Secure Choice Savings Program Fund as a trust outside of the State Treasury (currently a special fund in the State Treasury), with the Illinois Secure Choice Savings Board as its trustee."

This is a link to the "horse's mouth".

Illinois General Assembly - Bill Status for SB2758
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Old 05-23-2014, 04:17 PM
 
Location: Great State of Texas
86,093 posts, read 72,587,340 times
Reputation: 27566
Quote:
Originally Posted by lenora View Post
I was referring to the Illinois legislation only. Here's a relevant snip from the horse's mouth.

"Establishes the Illinois Secure Choice Savings Program Fund as a trust outside of the State Treasury (currently a special fund in the State Treasury), with the Illinois Secure Choice Savings Board as its trustee."

This is a link to the "horse's mouth".

Illinois General Assembly - Bill Status for SB2758
SS is a Trust off by itself yet that didn't stop Congress from borrowing from it.
The money is still going to the state Treasury.

And even after reform bills Illinois is still in deep trouble with their public pension system.
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Old 05-23-2014, 04:21 PM
 
Location: Great State of Texas
86,093 posts, read 72,587,340 times
Reputation: 27566
A number of states have been trying to pass bills like this for years.
And they all promise that the money will be kept separate.

Heck, if you have faith in your state to invest your money for retirement then go for it.

State Sponsored Retirement Savings Plans for Non-Public
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Old 05-23-2014, 06:53 PM
 
Location: Baltimore, MD
3,746 posts, read 4,224,664 times
Reputation: 6866
Quote:
Originally Posted by HappyTexan View Post
A number of states have been trying to pass bills like this for years.
And they all promise that the money will be kept separate.

Heck, if you have faith in your state to invest your money for retirement then go for it.

State Sponsored Retirement Savings Plans for Non-Public
Actually, I did go for it. As a former state employee, my retirement funds are sitting in a TIAA-CREF account. TIAA-CREF is one of the vendors chosen to manage the State's Optional and Supplemental Retirement Plans. I haven't heard of any attempts by the State to hit up TIAA-CREF for a few of my bucks. Have you heard of any state that has attempted to raid funds held in custodial accounts by outside vendors like TIAA-CREF? Y'think TIAA-CREF or any of the other vendors would go along with that?
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Old 05-23-2014, 08:24 PM
 
Location: Great State of Texas
86,093 posts, read 72,587,340 times
Reputation: 27566
Quote:
Originally Posted by lenora View Post
Actually, I did go for it. As a former state employee, my retirement funds are sitting in a TIAA-CREF account. TIAA-CREF is one of the vendors chosen to manage the State's Optional and Supplemental Retirement Plans. I haven't heard of any attempts by the State to hit up TIAA-CREF for a few of my bucks. Have you heard of any state that has attempted to raid funds held in custodial accounts by outside vendors like TIAA-CREF? Y'think TIAA-CREF or any of the other vendors would go along with that?
But they are not using an outside investment company.
The board is going to hire an investment manager and they are going to create 4 funds for people to choose from.

It's all right there in the bill (full text version).

I also read that employers that don't jump on board will get fined $250 per employee the first year and $500 thereafter.

5 of the 7 members of the board are state government employees and the other 2 are appointed by the Governor.

Between that and Obamacare penalties they are really hitting on the small business owner to ante up.
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Old 05-23-2014, 08:26 PM
 
29,818 posts, read 34,907,142 times
Reputation: 11735
Quote:
Originally Posted by lenora View Post
Actually, I did go for it. As a former state employee, my retirement funds are sitting in a TIAA-CREF account. TIAA-CREF is one of the vendors chosen to manage the State's Optional and Supplemental Retirement Plans. I haven't heard of any attempts by the State to hit up TIAA-CREF for a few of my bucks. Have you heard of any state that has attempted to raid funds held in custodial accounts by outside vendors like TIAA-CREF? Y'think TIAA-CREF or any of the other vendors would go along with that?
Lenora, raiding the fund is not my concern. Under the Illinois plan the board of trustees would be nominated but the Gov and Approved by the legislature. I can see a time where in the name of protecting investors the path of safe investments becomes Illinois a State bonds or like what Diblasio wants to do in NY is to use pension money for housing projects. Peter Franchot wanted to use Maryland pension money to develop a corporate technology zone. He was shot down. Diblasio us meeting stiff resistance from the NYC trustees. Now had he appointed them?
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Old 05-23-2014, 08:35 PM
 
29,818 posts, read 34,907,142 times
Reputation: 11735
The program is labeled secure choice. In order to obtain a secure positive growth in the individually controlled accounts won't bonds and or annuities need to be core? It is auto enroll can they really allow people to lose money like they can in 401/403 plans etc?
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Old 05-23-2014, 08:39 PM
 
48,516 posts, read 84,021,758 times
Reputation: 18050
Quote:
Originally Posted by HappyTexan View Post
SS is a Trust off by itself yet that didn't stop Congress from borrowing from it.
The money is still going to the state Treasury.

And even after reform bills Illinois is still in deep trouble with their public pension system.
SS law when passed specifically made US government the only one who could borrow the excess not going out in pay go system at rates they determine. Sweet deal for many years and now part of crisis as excess funds run out with programs dependent on them. When they are less than out flow then law mandates across the board cuts. Its all in SS trustees last report .
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