An IRA for the rest of us

Individual retirement accounts, unlike heavily federally regulated 401(k) plans, are notoriously "leaky," meaning that employees can withdraw their funds, after paying a penalty, if they think they need the money, Wray said.

What's more, opening CalPERS to the general public might prove difficult to achieve, even if De Leon's bill passes the Legislature and is signed into law by the governor. Allowing a government pension fund to make investments for nongovernment workers would require the granting of a number of legal waivers by the U.S. Department of Labor, Wray said.

Despite the potential pitfalls, Joanne Weinoe, president of Golden State Magnetic & Penetrant Lab Inc., an aerospace testing company in the Arleta area of Los Angeles, says she's excited about the possibility of helping her 15 employees while lowering her company's tax bill.

"We could use this as an enticement to prospective employees as well as existing ones," she said, "and actually save us some money on Medicare and Social Security."

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marc.lifsher@latimes.com