Want a state program to manage your retirement savings? State treasurer pitches plan in Decatur
"The simple fact is, we do not help these people save, and they don't save, then it's going to be our problem because they will access state services earlier," Frerichs told the Herald & Review editorial board. "We should care about our fellow human beings, regardless, but if we just care about our self-interest, then helping people save money is in our best interest.
He was in
Frerichs was also in town to present a
Frerichs, a Democrat, also is running for his second term as treasurer. He is opposed on the November ballot by Republican
The
Secure Choice started payroll deductions this month and will expand in steps through the end of next year. It applies to certain businesses with 25 or more employees.
The
Frerichs said he understood where people may be hesitant to trust the state with their money, given the financial woes and a budget stalemate that lasted longer than two years. He reiterated several times that a private financial service firm,
The state will act instead as an administrator, and will collect a "small fee'" to cover the cost of the program, Frerichs said.
"We're not trying to compete with the private sector, we're filling a need," he said. "If you do not like state government making sure you help provide retirement for your employees, that's fine. Set up your own program and you do not have to (go through the state program). If you're an employer with more than 25 employees and you already have a 401K or a pension, then this doesn't affect you."
Eight employers have applied to take part in the pilot program, from the
Frerichs said 90 percent participation is the state's goal.
"I like to say the most powerful force in the universe is inertia, and once you set something in motion, it tends to continue," he said. "Once you enroll and its automatically deducted, most people don't touch it. If you have to actually go and start something moving, if you have to find a financial adviser and chose from 50 different investment options and write and mail a check every month ... people will find every excuse not to do that."
Contact
___
(c)2018 the Herald & Review (Decatur, Ill.)
Visit the Herald & Review (Decatur, Ill.) at www.herald-review.com
Distributed by Tribune Content Agency, LLC.
McCaskill drafting legislation aimed at safety of duck boats after lake accident that killed 17
Paulsen-Phillips race for Congress shaping up as one of most expensive in Minnesota
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News