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Looks like State workers are smarter than the unions and corrupt government of California. Here is a VERY little known fact.
"If public pensions are such a good deal, why are a surprising number of state workers, 44 percent, leaving the first two years of their retirement contributions in a 401(k)-style individual investment plan rather than moving them to CalPERS?
The early returns on a little-known cut in state worker pension costs, enacted six years ago as part of the first Schwarzenegger budget, touched off a brief pensions-vs.-401(k) exchange at a CalPERS board meeting last month."
What is the government reaction? the workers are stupid. "The board was told that CalPERS staff could only speculate about why 44 percent of the workers failed to submit a choice, which leaves the first two years of their retirement contribution in a 401(k)-style plan.
For example, the workers may not have understood the material asking them to choose, the material may have been discarded unopened, or workers may have known that not submitting a choice is the same as choosing a 401(k)-style plan."
Maybe they do understand that CalPers is in deep trouble, and they want a retirement plan--not a government handout that can not be counted on.
Government is stupid if they underestimate the intelligence of the workers.
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"If public pensions are such a good deal, why are a surprising number of state workers, 44 percent, leaving the first two years of their retirement contributions in a 401(k)-style individual investment plan rather than moving them to CalPERS?
The early returns on a little-known cut in state worker pension costs, enacted six years ago as part of the first Schwarzenegger budget, touched off a brief pensions-vs.-401(k) exchange at a CalPERS board meeting last month."
What is the government reaction? the workers are stupid. "The board was told that CalPERS staff could only speculate about why 44 percent of the workers failed to submit a choice, which leaves the first two years of their retirement contribution in a 401(k)-style plan.
For example, the workers may not have understood the material asking them to choose, the material may have been discarded unopened, or workers may have known that not submitting a choice is the same as choosing a 401(k)-style plan."
Maybe they do understand that CalPers is in deep trouble, and they want a retirement plan--not a government handout that can not be counted on.
Government is stupid if they underestimate the intelligence of the workers.
More...