State run retirement plans have been among the news for quite some time now and the ever increasing excitement pertaining to the efforts made by the states to set up these private employer plans is really something that’s worth being a part of or knowing about, at the least.
State-run retirement plans a go?
These plans are in fact things that the majority of the population could be looking forward to. When you look at it from the general perspective, these retirement plans could go on and aid the millions of workers in the private sector who don’t enjoy financial stability to have something to look forward to after retirement.
Another side of this story is that this could create a mess. A really unavoidable, unwanted mess. The states are although very enthusiastic to make the move but their ability when it comes to running (After effectively creating) an employee benefit plan can be questioned. When you look at it this way, you can also expect every state to go on and develop its own retirement plan, which also can turn out to be a cumbersome situation.
The Pension Rights Center claims that around 25 of the states have been devising some sort of plan for the general population. Most of these plans involve the employers deducting money from the pay checks just like in a 401(k) plan. Minnesota is a name that comes to mind. The Management and Budget Agency of the state is busy trying to propose a private sector retirement plan. They could come up with one as soon as March, as indicated by a spokesperson.
While these plans could go a long way in making lives of the private sector employees better, the concerns regarding the decision of approval are also very important. Let’s hope that whatever transpires benefits the majority.
