Things are so divided these days. Say the word “Republican” to some people and an internal flare goes off. Say the word “Democrat” to another and you get the same reaction.
This article leads with the title, “Congress could pump the brakes on these new retirement plans”. It’s been shared multiple times on social media sites. But before anyone flares up, let’s break it down. Is this really a political play or just 2 different ways to see something – both having pros and cons?
The article state:
At issue are the state-run retirement plans being created in states including California, Oregon, Illinois, Maryland and Connecticut. Under the programs, workers who don’t have access to retirement plans through their jobs would be automatically enrolled in portable individual retirement accounts (IRAs), and contributions would be deducted directly from their paychecks.
A new Labor Department ruling is making it easier for states to offer Retirement Plans. Congress is considering doing away with the rule.
Supporters say – This would make saving for retirement easier to use and providing access for some that don’t currently have access to a 401K of some sort. States should be allowed to do this.
Opponents say – If states begin making their own plans, companies who currently offer retirement savings plans may discontinue offering savings plans of their own. It isn’t free for companies to provide these services, especially when they also offer contribution matching. Opponents would prefer to make it easier for companies to start and maintain 401K programs as well as offer incentives to companies to provide any or better savings plans.
Neither say – Retirement savings plans are bad and should be done away with. Both sides are just looking for the best way to offer option to Americans workers. Now, it’s just a matter of opinion – which seem to be in no short supply these days! LOL!
More Information (per the article):
- State plans, as currently proposed, do not allow company matching – which might actually decrease your current saving ability.
- No current structure exists for oversight – could lead to higher costs initially and possibly more long term if those oversights are sourced out to third parties.
So, just curious, what do you think?
Should states be allowed to move forward with these plans or not?
Why or why not?
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