State shouldn't mandate savings plans

Our state and federal government have done it again. Mandating programs that offer products already available in the public marketplace. Senate Bill 2758, the Secure Choice Savings Program, was approved recently at an annual cost of $15 million to $20 million for administration alone.

Supposedly, people who don't have a retirement savings plan at work have no options when it comes to saving for their retirement. This couldn't be further from the truth. Anyone can put their money, even on a payroll deduction basis, into IRA or Roth IRA accounts that are not managed and administered by the government. Any number of banks, brokerage houses or investment companies like Vanguard and Fidelity are more than willing to set up IRA's without the overhead of a state created broker. People just have to want to do it.

So now, our state will spend money on a program to force employers to set up these accounts and forcibly draw money from people's paychecks.

Oh, by the way, employees can opt out of participating. So, once people on a tight budget see less money in their paycheck, do you think they'll continue to allow their employer to put their money in the Secure Choice plan?

How do all the state employees and teachers whose pension benefits are up in the air feel about the state wasting another $20 million that could have been put to use closing the funding gap in their benefits? Why does the government feel the need to compete against private sector plans? Will this new government requirement to do business in Illinois attract and retain businesses or drive them away? Too late to reconsider. The bill is now sitting on lame duck Gov. Pat Quinn's desk awaiting signature.

Peter Gennuso

Schaumburg