New trend: State-run pension plans for private-sector workers | BenefitsPro

Grab your wallets; here’s a neat way to divert fee income to favored folks using state coercion:

Many states are considering implementing a new type of pension plan for private-sector workers that uses the efficiencies of the state run public retirement systems to administer them, according to the Pension Rights Center.

California, Connecticut, Massachusetts and New York City have all seen bills introduced in the legislature that would organize such a plan.

In May, the California Senate passed the California Secure Choice Retirement Savings Trust Act, which would require businesses with more than five employees to enroll in a new personal pension defined benefit retirement plan unless they already offer a retirement plan of some kind.

via New trend: State-run pension plans for private-sector workers | BenefitsPro.

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