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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Nation: How Connecticut’s Smart New Pension Plan Can Prevent Poverty in Retirement
http://www.thenation.com/blog/180417/how-connecticuts-smart-new-pension-plan-can-prevent-poverty-retirement
Website designer Dorry Clay works on her laptop at home in Stonington, Connecticut. (AP photo/Jessica Hill)
Michelle Chen on June 25, 2014 - 3:54 PM ET
Dorry Clay is used to going it alone. She lost her job in the recession, then bounced back by starting her own graphic design business, and even soldiered through cancer treatment. But now that shes saddled with debt and faces a shaky economy as a self-employed worker, she worries that her biggest struggle will come after she stops workingin retirement. Financial pressures and growing debt have made retirement savings more a pipe dream than American dream, Clay recently said in testimony at a Connecticut legislative hearing. I shouldnt have to work until I am 70 because I cant afford to retire.
Some Connecticut lawmakers have woken up to the issue; the state just passed a law to begin creating a public retirement system for private-sector workers. It would offer a novel statewide retirement benefit, funded through employer and employee contributions, that would be managed by the state and cover workers universally, regardless of whether they work for a big corporation or for themselves.
At a time when some state governments are panicking over public-pension crises, the idea of the government starting up a new retirement fund for private-sector workers may seem reckless. But actually, its a remarkably prudent investmentbecause it costs society less in the long run to help young workers save up today for a dignified life in retirement than to deal with their potential destitution in old age.
Faced with alarming rates of elderly poverty, New York City is also exploring ways to build a public nest egg for private-sector workers, with a new advisory panel on retirement security just launched by City Comptroller Scott Stringer. According to research by the New Schools Schwartz Center for Economic Policy Analysis (SCEPA), many workers in the city are retiring to a precarious life just scraping by on social security and meager personal savings. Just 12 percent of New York metro area workers have a traditional pension plan (and those more generous benefits are far more prevalent among public-sector workers compared to private firms), 38 percent have a 401(k)-type savings scheme, and half have no work-based retirement plan at all.
FULL story at link.
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The Nation: How Connecticut’s Smart New Pension Plan Can Prevent Poverty in Retirement (Original Post)
Omaha Steve
Jun 2014
OP
I think thats a bad ideal...if they conrol it...look what has happened to other government pensions.
Drew Richards
Jun 2014
#1
I'd look at it if you posted some specific concerns. This plan is not a 'government pension' at all
Bluenorthwest
Jun 2014
#4
Intriguing idea. They'll need to build in a lot of oversight to stop the...
Gidney N Cloyd
Jun 2014
#2
Drew Richards
(1,558 posts)1. I think thats a bad ideal...if they conrol it...look what has happened to other government pensions.
randys1
(16,286 posts)3. ANYthing is better than NOTHING
Bluenorthwest
(45,319 posts)4. I'd look at it if you posted some specific concerns. This plan is not a 'government pension' at all
by the way, it is a multiple employer pension plan. Not all pension plans are in single employer industries. Multiple employer plans are far more secure from meddling than single employer plans for various reasons including the fact that the control is not in the hands of any single entity.
Such things are regulated by the NLRB. This is how my pension plan functions. It's healthy, it protects members and it was one of the best ideas anyone in my industry ever had. Thank God for it.
Gidney N Cloyd
(19,829 posts)2. Intriguing idea. They'll need to build in a lot of oversight to stop the...
...state legislators and Mitt Romney-type crooks from pilfering it.
A Little Weird
(1,754 posts)5. Agreed
It needs oversight but I like the idea. Everyone deserves a secure retirement.