The chosen management team is in for windfall profits from the management fees.    Hopefully the state will have a transparent process for choosing it's investment managers.

With no retirement savings programs you can figure that most applicants will be on the low income side with very little disposable money.     It's a fact — you are an active investor only if your pay exceeds your expenses.   Investing is high risk if you have low income — period.  It's 'smart' to invest if you have the wealth to sustain short term losses.   Fact - wealth increases opportunity.

A company that provides retirement plan for it's members, stays in relationship and shows appreciation, for the work of its employees.  If the state assumes that providing a retirement fund is going to improve the security of wage earners, guess again.    

Windfall for the investing management profession and public corporations; little benefit to the security of low wage workers.  This sounds very familiar.