With the GOP wanting to get rid of Social security and Medicare $$$, they don't want the states to have the money and be better than what they would offer. In any case this is managed by the state, which is not for profit. Most 401 k are really 201 k. They want the state to pick up the cost, but not the money. When the GOP says the want states to have local control and responsibilities, they don't give them the money they collect. It all about money, competition and cutting their losses I.e. American people!