The excellent blog Capital & Main has an important piece up about the proposal to create a new retirement system in the state for workers who do not have a pension system.
As the writer Judith Lewis Mernit well describes, California ( and the nation)
For comparison, here is the Sacramento Bee version of the same story. http://www.sacbee.com/news/politics-government/article68342897.html
The Capital and Main piece is a good piece on important issues. But, do we really only want to consider the neoliberal finance approach? For example, the proposal calls for employers to insist on participation, but apparently does not require employers to contribute- as does social security.
Then, the advocates claim it is progressive because of the pooled IRA project. But, IRA's are still invested in the markets. This is like the Peterson Institute arguing for the privatization of social security.
Another option would be to create a California state bank, or credit union. Deposit all these millions and billions in a state bank ( or credit union). Then, do not take risky adventures with the money. Instead, invest in rebuilding state infrastructure, schools, roads, bridges, aqueducts, etc.
Once such a bank (credit union) was established and functioning, the state could run its enormous financial payments through the state banks, and save all of the current charges.
I think we should push real reform, not another way for the money manager class to extract income from working people.