State’s mini-Social-Security program is gearing up, but it’s real goal is to battle “pension envy” rather than to help Californians secure a retirement.
Steven Greenhut November 29, 2018
California officials have an incredible knack for proposing dubious, government solutions to problems that don’t actually exist, while ignoring the real problems that are under their purview. The best example, perhaps, is the $100-billion high-speed rail
project that will be far slower and costlier for consumers than our existing means of statewide high-speed travel (i.e., Southwest Airlines). The state is moving forward with that boondoggle — undaunted by continuous delays, engineering conundrums, cost overruns, and an obvious lack of demand for a new rail line.
But a close runner up is an unnecessary retirement program for private-sector workers that state officials are now unveiling on pilot-project basis. “Any employer with at least five employees that doesn’t already offer a workplace retirement savings vehicle will be required to either begin offering one via the private market or provide their employees access to CalSavers,” according to the
description from the state treasurer’s office.
Note the word “required,” despite its supporters’ claims that the program is totally voluntary. Employees can opt out, but employers cannot. That five-employee requirement captures the bulk of California’s small businesses, which means yet another regulatory and bookkeeping requirement, even if the state promises that the program is cost free. The $170 million in a taxpayer-provided startup loan might not be much by California
budget standards, but this may be just the beginning. And for what?...........
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