Improving retirement savings one state at a time, begin with California

The Sacramento Bee/Jim Sanders, 9/29/12. "Jerry Brown signs package to advance private retirement savings plan."

Pension/savings  plan for the working poor, way to go CA

Legislation designed to pave the way for a private retirement plan affecting millions of California private-sector workers was signed into law Friday by Gov. Jerry Brown. The goal is to create a savings program in which workers who have no access to a pension can count on a guaranteed rate of return for contributing about 3 percent of their salary.

Brown's signing of Senate Bill 1234 signals support for the program, but he signed separate legislation, Senate Bill 923, that requires a feasibility study and a final vote by the Legislature before launching it."

....  "With his leadership, we are setting the path for middle-class, hard-working Americans to prepare for retirement so they won't be forced into poverty," de León said in a written statement ."With his leadership, we are setting the path for middle-class, hard-working Americans to prepare for retirement so they won't be forced into poverty," de León said in a written statement."   Read article.

Related -  New Jersey Hearald/Associated Press/Judy Lin, 9/28/12 "California creates state-run private retirement plan."  The bill will establish the California Secure Choice Retirement Savings Program for more than 6 million lower-income, private-sector workers whose employers do not offer retirement plans. ... He said the program will act as a supplement to Social Security by offering private-sector workers a portable savings plan with a guaranteed return. He said the program is not a pension but rather acts as a savings account, which could be a national model for improving retirement savings.

Posted by Kathy Meeh