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Letters to the Editor in LA Times Address Scapegoating of So-Called “Double-Dipping” Public Pensioners
The LA Times published two Letters to the Editor in response to the April 10 article, “Two checks: State lawmakers collect public pensions and legislator’s salaries.” The readers point out that, 1) both the average and median state pension is much lower than the outliers oft-hyped in the media, and 2) the term “double-dipping” shouldn’t be used to describe someone who has legitimately earned and is receiving a public sector pension, and chooses to stay active in the workforce in a different capacity; it doesn’t cost the taxpayer anything additional – that job would have been filled by another individual. Read more: http://www.latimes.com/opinion/readersreact/la-le-0412-wednesday-pension-double-dipping-20160412-story.html
Op-Ed: Public Pensions Chronically Underfunded Due to State Legislatures
Op-Ed in the New York Daily News: Public pensions across the country are chronically underfunded due to state legislatures failing to fulfill their end of the bargain, leaving a gap between promises made and funds available. The problem is often misattributed to the defined benefit plans themselves, or to the very few individuals that rake in lavish pensions. Read more: http://nydn.us/1SDhg6h
New Regulations on Advisers of Individual Retirement and 401(k) Investments
The Labor Department issued new regulations on Wednesday that will require financial advisers and brokers handling individual retirement and 401(k) accounts to act in the best interests of their clients. These rules seek to mitigate the conflicts of interest between investment professionals, who may for instance be on commission, and individuals saving for retirement. Read more: http://www.nytimes.com/2016/04/07/your-money/new-rules-for-retirement-accounts-financial-advisers.html?emc=edit_th_20160407&nl=todaysheadlines&nlid=66881485&_r=0
Minimum Wage Deal Reached
Lawmakers and labor unions have struck a tentative deal to raise the statewide minimum wage to $10.50 an hour next year, and then gradually to $15 by 2022. Read more: http://www.latimes.com/politics/la-pol-sac-minimum-wage-deal-20160326-story.html
Secure Choice Moves Forward
California has moved closer to becoming the first state to make retirement savings accounts a near-universal benefit for workers. A state board on March 28 sent a set of recommendations to the Legislature calling for the creation of the California Secure Choice Retirement Plan – essentially a 401(k) plan operated by the state and open to private-sector workers whose employers don’t offer a retirement savings plan. Read more: http://www.latimes.com/business/la-fi-mandatory-401k-20160329-story.html