EDITORIAL: State market fills big retirement need for low wage workers
In
"That is a problem," says
DOC launched its
About nine states and the city of
The retirement accounts sold through the marketplace by private companies are designed to be portable, which is helpful for the "gig" economy that includes high-tech workers or even ride-sharing workers.
McKinnon, the marketplace director, said two firms have qualified so far though more than a half-dozen have applied.
To participate, investment firms must hold their yearly fees under 1 percent for participants, and state financial experts review the investment firms each year for compliance.
The plans let employers set up automatic payroll deductions and some allow employer contributions into workers' personal accounts.
The marketplace concept was a national project by
None of these plans is a panacea for the growing risk of poverty that Americans face in old age. The risk is growing as fewer workers are covered by employer-sponsored pensions and the sufficiency of
It remains to be seen how many small employers or low-wage workers tap use the
She said the state has 131,000 private employers -- most of them small -- which do not offer a retirement plan option for their workers.
It seems obvious that getting even a small share of them to participate could make a big difference for thousands of workers in our state.
However the marketplace works out in practice, it is an appropriate step for government to step in where the private financial markets have not yet gone.
And if the program takes off,
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