Calif. Lawmaker Wants to Privatize State Pensions

[papau]

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

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.

[Book Lover]

1. Sounds like it would also "help de-fang" CalPERS

Wasn't it only last week that the head of CalPERS was forced to resign due to "too much" overt activist investment?

[PROGRESSIVE1]

2. Another scheme by DAS GOP to steal our hard earned money!

:grr:

[davidinalameda]

3. I couldn't get the link to work

could you repost it?

thanks

[papau]

4. Here it is again

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

....nytimes.com/reuters/politics/politics-funds-california.html