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Title: Can a Publicly Sponsored Retirement Plan for Private Sector Workers Guarantee Benefits at No Risk to the State?

Citation Type: Miscellaneous

Publication Year: 2012

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Abstract: The California legislature is currently considering SB 1234, a bill that would create the California SecureChoice Retirement Savings Trusta state-sponsored retirement plan for private sector workers who lackaccess to a workplace plan. Although the plan would technically be a defined-contribution (DC) programbased on an individual retirement account (IRA) platform, assets would be managed in a pooled fund andworkers would be guaranteed a rate of return on their contributions, insured by private underwritersrather than the state. This Policy Brief broadly assesses the feasibility of such a plan by analyzing theprivate cost of guarantees, probable investment returns simulated through a hypothetical pension investmentportfolio, and the long-term funded status of a hypothetical pension plan given conservativeassumptions.

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Authors: Rhee, Nari; Stubbs, David M.

Publisher: Berkley Center for Labor Research and Education

Data Collections: IPUMS CPS

Topics: Aging and Retirement, Health, Other

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