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Government’s Role in 401(k) Plans Takes Stage at GOP Debate

Retirement plans — and the role the federal government should play with them — made a surprise appearance at the GOP presidential candidate debate last night.

In a forum titled “Your Money, Your Vote,” CNBC senior personal finance correspondent Sharon Epperson joined the moderating panel, asking presidential aspirant Carly Fiorina, “Should the federal government play a larger role in helping to set up retirement plans for these workers?”

Fiorina, a former CEO of Hewlett-Packard, quickly responded, “No.” Explaining her response, she echoed comments she made earlier in the evening that “every time the federal government gets engaged in something it gets worse. And then the government steps in to try and solve the problem…

“Companies should, if they want to attract the best workers, provide a good set of benefits. But honestly, if you’re a small business owner today you are being crushed,” she said. “We have 400,000 small businesses forming every year in this country. How great is that? They are employing themselves, they are potentially employing others,” she continued, before noting that the bad news is that 470,000 small firms are going out of business every year, citing the cost of federal government regulations such as Obamacare.

Epperson, who seemed caught off guard by the response, pushed back: “So you wouldn't agree — you wouldn't agree with a start for 401(k) for businesses or anything like that?”

“I think it’s a wonderful thing that businesses start a 401(k),” Fiorina responded. “The point I’m making is this: The federal government should not be in a lot of things,” going on to note that, “There is no Constitutional role for the federal government in setting up… retirement plans.”

Later on in the debate, former Florida governor Jeb Bush referenced his experience as a small business owner in establishing a 401(k): “It took an arm and a leg to be able to set up a 401(k). Because of all the federal mandates and federal laws, it was too expensive,” he said, closing by stating that private savings needed to be incentivized and Social Security “protected for those that have it.”

Here's the exchange between Fiorina and Epperson (the 2-minute video starts with a 15- or 30-second ad):

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