Every autumn, November 1 doesn’t just begin the countdown to the major winter holidays. It also signals the start of a critical financial time of year: open enrollment season. During open enrollment, employees can make specific changes to their employer-provided benefits, including their 401(k) retirement plans.

In most cases, eligible employees receive notifications announcing the start of the enrollment period. Often, that notice also outlines the types of changes a person can make to their 401(k), including how to open a retirement account if they don’t currently have one. If you want to make sure you’re ready for open enrollment, here’s what you need to know.

To put it simply, open enrollment is a set period of time — usually lasting between two and six weeks — when employees of a company can make changes to certain employer-provided benefits. Before open enrollment begins, employees are typically notified about when the timeframe starts, the nature of the changes they can make, how they can handle the updates and how long they have to complete the changes.

In most people’s minds, open enrollment is associated with healthcare. The primary reason is that employer-sponsored health insurance plans aren’t the only healthcare plans subject to open enrollment. If you purchase healthcare coverage through a marketplace or exchange, open enrollment applies then, too. As a result, government agencies often advertise the health insurance enrollment period before and during the event, which draws attention to the timeframe.

In reality, open enrollment isn’t limited to medical coverage. Instead, any employer-sponsored benefit that allows employees to choose between options can be subject to open enrollment. This includes 401(k)s.

In most cases, the only other time a person can make changes to specific employer-provided benefits is during special enrollment periods. Typically, special enrollment periods are triggered by qualifying major life events. A marriage or divorce may initial a special enrollment period. The same goes for the birth of a child or a change in jobs.

While special enrollment periods are also most commonly associated with medical coverage, they can apply to other benefits as well. Once a special enrollment period begins, an employee usually has a few weeks — usually around 30 days — to make any changes. Once that window closes, they’ll either have to wait for another qualifying major life event or for the next open enrollment period if the want to make changes to their benefits.

 Courtesy: katleho Seisa/iStock

SponsoredAdvertiser DisclosureCompare Personal Finance Options for 2023What is Your Financial Goal?Help Me ChooseEmergency FundRetirementGrow WealthEducation FundDown Payment7 Matches - Financial Management Options for Growth

In general, any employer-sponsored retirement account may use enrollment periods to give employees opportunities to make certain changes. This can include 401(k)s, 403(b)s, 457(b)s and other plans.

Usually, privately acquired retirement plans are less restrictive when it comes to opening accounts and making specific changes. For example, you don’t have to wait for a qualifying event or the start of enrollment to open an IRA with a bank or brokerage. You might also be able to increase or decrease your monthly contribution at any time.

However, that doesn’t mean there aren’t any restrictions with private retirement plans. Every financial institution that offers one can have unique rules and requirements regarding changes. This means you need to review the terms and conditions carefully to ensure you know when you can make specific plan adjustments.

Overall, there are two main reasons why companies use enrollment periods. First, open enrollment creates an opportunity for any employee to update specific benefits, regardless of whether they’ve experienced a major life event recently. As a result, it ensures its workforce can plan for retirement — and current financial needs — more effectively by adjusting contribution levels or making other updates.

Second, open enrollment makes benefits administration easier for companies. If every employee could make changes to their 401(k) at any time, processing the update requests would be cumbersome for both the employer and the financial institution supporting the 401(k) plans. By limiting those activities to open enrollment and qualifying major life events, management is easier. Along with saving time, that helps keep plan costs down. This benefits employers and employees alike.

While certain 401(k) changes can only take place during open enrollment or special enrollment periods, other adjustments can happen during different timeframes. Precisely what falls in this category and when the changes can occur may vary by employer. However, some options are more common than others.

For example, many employers allow employees to update their 401(k) investment selections quarterly. This helps them shift their allocations in a timelier manner to maintain portfolios that meet their needs. However, this isn’t universally available, so keep that in mind for your plan. Changes outside of that are often restricted until open enrollment.

 Courtesy: Fly View Productions/iStock

Generally speaking, opening a retirement account or changing details on your existing 401(k) is reasonably straightforward during the enrollment period. However, the process may vary from one company to the next.

Some companies may rely on an online benefits portal. This tool can simplify the process of gathering details about desired changes while lowering the administrative burden. Others may have physical paperwork that employees need to complete. In some cases, adjustments may require calling a toll-free number.

If you want to open a new 401(k) or make changes to a current one, you’ll need to review the guidance your employer provides. These outline the required process for choosing and formally submitting changes or creating a new account.

If you don’t need to update your 401(k) during the enrollment period, you might not need to take any action. Some plans are essentially self-renewing, so they’ll continue with the same parameters next year if you don’t take action during open enrollment.

However, some companies require employees to confirm they want their 401(k)s to continue forward as-is. It’s essential to review all guidance from your employer during enrollment season so you can follow any required steps to maintain your plan.

Ultimately, open enrollment is always an opportunity. Take a moment to explore your available options. You can get the most out of your benefits while ensuring they’re set up to meet your unique financial needs.

Has your employer given you notice that your retirement plan will soon be converted to a safe harbor 401(k) plan? If so, you may be in for a pleasant surprise. Safe harbor plans often include employer contributions or employer matching arrangements that can benefit your retirement savings in some pretty helpful ways.

Although each plan is different, this change may mean that you’ll start to accumulate even more vested savings in your 401(k) account while making the same annual contributions. To better understand how a safe harbor 401(k) could impact the way you’re currently saving for retirement, it’s important to learn the differences between a safe harbor plan and a basic 401(k) plan.

Any type of 401(k) plan is highly regulated because there are various opportunities for tax-deferred income associated with these accounts. The government wants to ensure that these retirement accounts are used fairly and in accordance with IRS standards. Because these accounts are federally regulated, the government also works to ensure that they’re beneficial for all employees who have them. Below are some examples of issues that can arise with basic 401(k)s.

At one large corporation, the lowest-paid employees may make $30,000 per year, while the CEO makes $3 million per year. If a 401(k) is part of the benefits package for the business, employees across this wide range of pay scales all have the opportunity to make voluntary contributions to their 401(k) each year. However, an employee who makes $3 million may be able to save far more than an employee who makes $30,000 by making maximum contributions to their account. In 2021, the maximum amount of money a person can contribute to their 401(k) is $19,500 — a number that’s not easy for someone earning $30,000 to save.

Here’s another example. At a small business, there are five employees, four of whom are business partners with 25% ownership rights in the company. The other employee is a receptionist who has a salary of $40,000. As the business grows more successful, the partners are more likely to contribute the maximum amount to their 401(k)s each year, while the receptionist may have trouble contributing $2,000.

In both examples, the disparities can result in expensive penalties for the business.

SponsoredAdvertiser DisclosureCompare Personal Finance Options for 2023What is Your Financial Goal?Help Me ChooseEmergency FundRetirementGrow WealthEducation FundDown Payment7 Matches - Financial Management Options for Growth

Government agencies conduct annual non-discrimination testing on company-run 401(k) programs to ensure that the benefits of the programs don’t become skewed towards helping certain employees more than others. The testing compares the voluntary contributions highly compensated employees make with the contributions of other employees.

There’s a variety of standards to determine who qualifies as a highly compensated employee. It could be an employee who has more than 5% ownership in the business, or it could be someone with annual earnings of $130,000 or more. Some companies also opt to set their own standards for highly compensated employees when no employees meet the traditional standards.

When an excessively high percentage of annual contributions comes from highly compensated employees, the business is at risk of failing a non-discrimination test. The business must take remedial action if it fails a test, which could involve making contributions on behalf of lower-earning employees. The most serious consequences of repeated failed tests can be the dissolution of the 401(k) plan, meaning the IRS no longer recognizes the savings as being tax-deferred.

An alternative solution is to convert the program to a safe harbor plan. A safe harbor plan protects the business from expensive pitfalls that can arise when high-earning employees make the majority of voluntary contributions.

401(k) safe harbor plans are specifically designed to meet the standards of non-discrimination testing, so safe harbor plans don’t undergo annual tests. Instead of hoping that employees at all income levels contribute enough, the employer makes specified annual contributions on behalf of each employee. These contributions are vested as soon as they’re deposited, meaning that the money belongs to the employees, who can withdraw it in accordance with 401(k) withdrawal rules. Employees are still able to make voluntary contributions of their own to their 401(k)s, too.

Any existing 401(k) plan can be converted to a safe harbor 401(k) plan. Making the change requires two steps. First, the employer must consult with the 401(k) plan provider to work out the logistics of converting the plan. Although most providers offer safe harbor plan options, some don’t. In general, providers charge less for administering a safe harbor plan than a traditional plan. The IRS also requires employers to give employees written notice within 30 to 90 days of the change. The notice must clearly spell out how the change will impact each employee and what employer contributions the employee may be eligible for.

There are three different types of safe harbor 401(k) plans. Each plan type requires a different type of employer contribution. In a non-elective safe harbor plan, employers contribute 3% of each employee’s annual income to the employee’s 401(k). This contribution exists for all employees who are eligible for 401(k) savings, and the employer makes the same contribution regardless of how much the employee contributes.

A basic safe harbor 401(k) plan is an employer-matching plan. For employees who contribute 3% or less of their annual earnings, the employer will match the employee’s contribution, but the employer match won’t exceed 3% of the employee’s annual earnings. If the employee’s contributions exceed 3% of earnings, the employer will continue to match half of the earnings over 3%, but the employer’s total contribution for the year won’t exceed 5% of the employee’s annual earnings. This type of plan is also called an elective safe harbor plan.

An enhanced safe harbor 401(k) plan is an even simpler form of employer contribution matching. The employer makes a 1:1 match of any money the employee contributes, but the employer contribution won’t exceed 4% of the employee’s earnings for the year.

Many employees enjoy the advantages of safe harbor plans. Although some plan types require employees to make voluntary contributions to unlock the benefits of employee matching, this type of 401(k) offers the ability to double any employee contributions. Even the best of investments don’t usually double each time someone makes them.

Immediate vesting is also a big benefit. In other 401(k) arrangements, employees have to wait three years or more for any 401(k) contributions to be fully vested — meaning theirs to use. With a safe harbor plan, an employee could withdraw all of the employer contributions anytime they want, although tax penalties for early withdrawals in retirement plans still apply.

 What Is an RIA Advisor?

Planning for the future is always a good idea, but it can also be overwhelming if you aren’t sure what to do. This is where an RIA Advisor comes in. They can help guide you to make good decisions and set you up for a financially secure future.

A Registered Investment Advisor (RIA) is registered with the government to give investing advice. They stand apart from other types of finance advisors because of their fiduciary duty to their clients, which means the law requires them to act in your best interest. On the other hand, a regular investment broker may also give financial advice, but they can leave out options that may be better for you.

RIAs can also help provide financial advice beyond investing. While they won’t tell you how to spend your money, they can make recommendations on planning for your future.

The person you will speak to is an Investment Advisor Representative that works at an RIA. There is a bit of confusion by some that an RIA is a person, but it is actually the place where an IAR works. You will still hear people referred to as RIAs, but it helps to understand that the person is technically an IAR. 

To become an IAR, the advisor must have passed the Series 65 or Series 66 exams, plus the Series 7. These tests allow advisors to give you financial advice and sell you stocks and bonds. 

How Do RIA Advisors Help?

There is a common misconception that investment advisors are only for people who have lots of money to invest. However, this is far from the truth. An advisor can still be beneficial to someone with less money. For instance, starting your investing small at a younger age can compound into a comfortable cushion by the time you are ready to retire.

The main reason people meet with an RIA is to discuss investment options they can help out with. This includes purchasing stocks, bonds and savings. But, they can also help people plan for the future and provide invaluable investment education. 

Nearly 50% of adults have no retirement savings and are left to hope that their pension, 401(k) or Social Security payments will be enough to live on. Unfortunately, this does not work out for many people, and they end up struggling in retirement.

But RIAs can also do more than help prepare for retirement. Looking at investing options or planning for your child’s college fund can all be achieved through an RIA. They can even help determine how much you should be investing versus saving and just how those investments should be made. 

Another one of the many benefits of working with an RIA is that they are registered with the Securities and Exchange Commission. In doing so, all formal complaints are tracked, and you can easily view them. Even though advisors go through a rigorous process to become an advisor, it is still a good idea to check for any complaints.

Many people use the terms “RIA” and “financial advisor” interchangeably, but there are some important factors that you need to know before searching for one. “Financial advisor” is an umbrella term used to describe a number of people who give investing advice. 

However, the two main types of people who fall under the financial advisor umbrella are RIAs and brokers. The main distinction between the two is that an RIA has a fiduciary responsibility toward their client and is registered with the SEC, whereas a broker does not. 

This is not to say that brokers aren’t a good option or that they are going to give you bad advice in an attempt to take your money. But the RIA is legally required to provide you the best information available to them. 

On the other hand, a broker working for an investment firm may have quotas or goals to reach that are imposed by their parent company. These are not necessarily bad investments, but they may not be the best for your situation.

To further complicate things, there are also Certified Financial Planners and a range of other titles. Each state is different in what it allows advisors to call themselves, but a financial planner is not necessarily the same as a financial advisor. If you are unsure of someone’s qualifications, you should directly ask if they are a fiduciary.

RIA fees vary widely, but they typically hinge on the amount invested. A survey by Advisory HQ News Corp found that the average amount paid was 1.02% on a $1 million investment. However, you can expect lower investments to have higher costs to invest.

Investments above $1 million will likely have a fee of under 1%, while those under $1 million should expect a fee that goes up accordingly. While charging a percentage of your investment is the traditional method advisors use to bill for their services, recent changes have shifted that trend.

Some firms and advisors have begun charging flat fees for investing or consulting instead of a percentage. This may be better for some people who want some advice and don’t want to be pressured into investing. Because the advisor is getting paid for their time, they may be less likely to push you into investing. 

This also brings up another important topic. You should never feel pressured to invest. This is why working with someone who does not work on commission may be better for you. Some RIAs do a consultation for free and then have a set price of upwards of $200 or more for future meetings and investments. They may also set you up with a monthly plan for recurring investments.

Retire on Your Income Tax Returns by Taking These Steps

For many households, getting tax refunds is the norm. Over-withholding, tax credits — refundable and nonrefundable — and deductions can all reduce a household’s tax burden. In some cases, the excess amount is sent to the IRS intentionally, as it allows households to receive what feels like a windfall every year. In others, it is incidental, as that wasn’t the household’s intention.

Regardless of the reasoning for the overpayment, the IRS issued more than 96 million tax refunds for the 2021 tax year. The total value of the refunds was over $292 billion, with the average refund coming in at $3,039.

In many ways, a refund can be an opportunity, particularly if you’re a bit behind on your retirement planning. If you want to fund your retirement using the refunds you receive after filing your taxes, here are some ways to make it happen.

If you want to set your tax refunds aside for retirement, your first step can be to take the money and work to maximize your retirement savings. Since you can’t usually make lump sum deposits to a 401(k) through an employer, you may want to set up an IRA.

Whether you should aim for a traditional or Roth IRA mainly depends on a few factors, including when it’s better to capture the tax advantages. If you’re in a higher tax bracket now than you expect to be in retirement, a traditional IRA may make more sense. If your taxable income is lower than you believe it’ll be in retirement, then a Roth may be the way to go.

There are annual limits to how much you can set aside in retirement accounts. In 2022, the IRA contribution limit is $6,000, plus an extra $1,000 if you’re age 50 or older. For 401(k)s, the limit is $20,500 for elective contributions, plus another $6,500 if you’re age 50 or older.

If you’re fully funding a retirement account but still want to use tax refunds to secure your financial future, opening a brokerage account could be a wise decision. You can get similar investments – including individual stocks, ETFs and other classic options – to what you find through 401(k)s and IRAs but that aren’t subject to the same limits.

While brokerage accounts aren’t tax-advantaged, they can potentially help your money grow. Plus, you don’t have to wait until you’re 59 ½ to tap into the account, making this a solid choice if you potentially want to use investments to retire early.

Before you go in this direction, come up with an investment strategy. Diversification should be part of the plan, as well as risk management in general. If you don’t have time to research options on your own, consider working with a financial advisor. That gives you access to an investment expert so you can choose options that align with your needs and preferences.

For those who are comfortable with volatility, using your tax refund to purchase some cryptocurrency could be an option. It’s a pathway toward diversification, though it carries far more risk than traditional investing.

Cryptocurrencies aren’t typically backed by an underlying asset. As a result, their values are primarily based on public perception and investor sentiment. That can lead to substantial swings in prices, at times in incredibly short time periods.

Whether crypto is or isn’t viable as a global currency isn’t fully clear. Plus, new regulations that alter the landscape could be on the horizon. Still, it may be an option worth considering for those looking for non-traditional ways to potentially secure their financial future — just remember to be careful, and keep your personal risk tolerance in mind.

If you’re eligible for a health savings account (HSA), sending your tax refund to that account could benefit you in retirement. The balance of an HSA can roll over from year to year. The money you contribute is also tax-deductible, and there are tax-free withdrawals if you use the money for qualified medical expenses.

Unlike some alternatives, an HSA can also follow you if you change jobs. You aren’t required to take distributions at any particular age either, allowing you to effectively hold the money as long as you want.

By boosting your HSA, you’re making health-related costs easier to shoulder moving forward. Since healthcare spending usually increases as a person ages, this can be a solid option for securing your financial future. 

Most people view a tax refund as a positive. However, it isn’t necessarily the best way to secure your financial future.

While a tax refund can feel like a windfall, the IRS isn’t typically giving you extra money. Barring money relating to refundable tax credits, a refund mainly involves getting your own money back. It’s cash you’ve already given to the IRS; they’re simply returning the difference between what you owed in taxes and the amount you sent over during the year.

Since many households are essentially getting their own money handed back to them, the excess cash is like an interest-free loan made to the federal government. That cash simply builds up; it doesn’t grow as it would if you put it into an interest-bearing or other form of account that can lead to earnings.

Instead of allowing the federal government to hold your money interest-free, it’s better to adjust your withholdings. By lowering your withholdings, you end up with a slightly larger paycheck. Then, you can take the extra and put it in a high-yield savings, retirement or other kind of investment account. That way, that money has a chance to grow while you create a small nest egg, giving you a bit more than you’d have otherwise.

 What Is the Russell 2000 Stock Index?

You have probably heard of the Dow Jones Industrial Average and the S&P 500, but another important index is the Russell 2000 Index. Of course, the stock market is complex, but indexes are simply a combination of different stocks grouped together.

These indexes are popular with investors because of their relative safety and steady returns. Although no investment is ever truly safe or risk-free, a diversified portfolio has a better chance of weathering a downturn in the economy. However, an index is much more than something to invest in as it provides an essential outlook on the economy’s overall health.

The Russell 2000 Index was created in 1984 by the Frank Russell Company, which was an investment firm. They started their indexes to compare their success against overall trends in the stock market. Their indexes became popular as investors sought to put money in them.

In 2014 the London Stock Exchange Group acquired the Russell indexes and created FTSE Russell as a subsidiary of theirs. Today, the LSEG maintains the Russell 2000 Stock Index along with the other Russell indexes.

The Russell 3000 Index measures 3000 companies with the highest market cap. The companies on the Russell 3000 Index make up approximately 98% of the entire U.S. equities market. 

The Russell 3000 Index consists of two segments, the Russell 1000 Index and the Russell 2000 Index. The Russell 1000 Index measures the top 1,000 businesses with the highest market cap.

As a comparison, the S&P 500 measures only the top 500 highest market cap stocks. Because the Russell 2000 index has so many stocks, it is a more thorough indicator than the S&P 500 or the Dow Jones Industrial Average. 

On the other hand, the Russell 2000 Index measures 2000 businesses on the Russell 3000 Index with the smallest market cap. This essentially makes the Russell 2000 the bottom two-thirds of the Russell 3000 Index.

 What Does the Russell 2000 Index Measure?

Many economists use the Russell 2000 to measure the overall health of the stock market and the economy. More specifically, an index tracks a specific segment of stocks, which, when put together, can help create a more accurate depiction of the overall economy.

The Russell 2000 is similar to the S&P SmallCap 600 in that it covers the lower end of a larger index. However, the Russell 2000 is over three times the number of companies of the S&P SmallCap 600, so it can have less volatility.

Because the Russell 2000 looks at the lower end of the stock market, it can provide a different perspective than the S&P 500 or Russell 1000. This lower segment is considered a more realistic metric than the higher-performing stocks, which could otherwise remain successful.

Although investors usually discuss indexes in the context of future investment, they also serve to look at past trends. This is why you can see Russell indexes going back to the 1970s, even though it was not created until the early 1980s. 

One of the best ways to illustrate data from the Russell 2000 Index, or any index, is by using a graph. By plotting the data, you can easily compare how the index performed against individual stocks or even your investments. 

The Russell 2000 Index is made up of companies on both the New York Stock Exchange and the Nasdaq. These are two major stock markets that operate in the United States. One of the more unique aspects of the Russell 2000 Index is that, in addition to including stocks from the New York Stock Exchange, it can also include stocks from OTC Markets Group. 

The OTC Market Group trades very low cap stocks known as pink sheets or penny stocks. The Russell 2000 Index includes these because there is a potential for OTC Markets businesses to be in the bottom 2,000 performers. 

Businesses on the Russell 2000 Index include Dillard’s, Fitbit, iRobot, Crocs, Papa John’s and Winnebago, to name a few. Because the index comprises 2,000 businesses with the smallest market cap, the full list can constantly change based on how these businesses perform.

A common misconception in the stock market is that you can buy into indexes. While this is not the case, you commonly hear people talk about buying them. Because they are just a combination of stocks used to create a metric, there is nothing to invest in.

However, you can invest in the Russell 2000 by purchasing an exchange-traded fund or a mutual fund. ETFs and mutual funds mimic the moves of the overall market because they are made up of individual stocks. Although mutual funds and ETFs have these individual stocks, you only own the security and not the actual stock.

The main difference between the two is how people trade them. An ETF is traded like a stock throughout the day while the market is open. A mutual fund can be purchased after the market closes, although you can place transactions throughout the day.

You can invest by yourself or through a broker, which you can easily find online. They can help you make an informed decision and explain the best course of action. Examples of online brokers include Fidelity, TD Ameritrade and Vanguard, to name a few. However, it’s also wise to consult with a financial advisor before putting money into the stock market.

Another option that is a bit more complex is to purchase the stocks that make up the Russell 2000. Although it is possible, it would be far more complicated than just purchasing an ETF or a mutual fund — not to mention you would need to swap companies out.

• Article
• Talk
• Read

View history

Tools

From Wikipedia, the free encyclopedia"Public organization" redirects here. For the type of Thai agency, see State agencies of Thailand § Public organizations.Economic sectorsThree-sector modelPrimary sector (raw materials)
Secondary sector (manufacturing)
Tertiary sector (services)Additional sectorsQuaternary sector (information services)
Quinary sector (human services)TheoristsAGB Fisher · Colin Clark · Jean FourastiéSectors by ownershipBusiness sector · Private sector · Public sector · Voluntary sector

Employment in the UK Public Sector, December 2013

The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, infrastructure, public transit, public education, along with health care and those working for the government itself, such as elected officials. The public sector might provide services that a non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service.[1] Public enterprises, or state-owned enterprises, are self-financing commercial enterprises that are under public ownership which provide various private goods and services for sale and usually operate on a commercial basis.

Organizations that are not part of the public sector are either part of the private sector or voluntary sector. The private sector is composed of the economic sectors that are intended to earn a profit for the owners of the enterprise. The voluntary, civic, or social sector concerns a diverse array of non-profit organizations emphasizing civil society. In the United Kingdom, the term "wider public sector" is often used, referring to public sector organizations outside central government.[2]

The organization of the public sector can take several forms, including:

• Direct administration funded through taxation; the delivering organization generally has no specific requirement to meet commercial success criteria, and production decisions are determined by government.
• State-owned enterprises; which differ from direct administration in that they have greater management autonomy and operate according to commercial criteria, and production decisions are not generally taken by a government (although goals may be set for them by the government).
• The public sector in many countries is organized at three levels: Federal or National, Regional (State or Provincial), and Local (Municipal or County).
• Partial outsourcing (of the scale many businesses do, e.g. for IT services) is considered a public sector model.

A borderline form is as follows:

• Complete outsourcing or contracting out, with a privately owned corporation delivering the entire service on behalf of the government. This may be considered a mixture of private sector operations with public ownership of assets, although in some forms the private sector's control and/or risk is so great that the service may no longer be considered part of the public sector (Barlow et al., 2010). (See the United Kingdom's Private Finance Initiative.)
• Public employee unions represent workers. Since contract negotiations for these workers are dependent on the size of government budgets, this is the one segment of the labor movement that can actually contribute directly to the people with ultimate responsibility for its livelihood. While their giving pattern matches that of other unions, public sector unions also concentrate contributions on members of Congress from both parties who sit on committees that deal with federal budgets and agencies.

Infrastructure includes areas that support both the public's members and the public sector itself. Streets and highways are used both by those who work for the public sector and also by the citizenry. The former, who are public employees, are also part of the citizenry.[citation needed]

Public roads, bridges, tunnels, water supply, sewers, electrical grids and telecommunication networks are among the public infrastructure.

Right-libertarian and Austrian School economists have criticized the idea of public sector provision of goods and services as inherently inefficient.[3] In 1961, Murray Rothbard wrote: "Any reduction of the public sector, any shift of activities from the public to the private sphere, is a net moral and economic gain."[3]

American libertarians and anarcho-capitalists have also argued that the system by which the public sector is funded, namely taxation, is itself coercive and unjust.[4] However, even notable small-government proponents have pushed back on this point of view, citing the ultimate necessity of a public sector for provision of certain services, such as national defense, public works and utilities, and pollution controls.[5]

• Economics portal
• Civil service
• Government agency
• List of countries by public sector
• Nationalization
• Privatization
• Private sector
• Public ownership
• Public–private partnership
• Public sector business cases for projects
• Special-purpose district
• State-owned enterprise

1. ^ "public sector". Investorwords, WebFinance, Inc. 2016.
2. ^ Glover, A., Accelerating the SME economic engine: through transparent, simple and strategic procurement, paragraph 4.26, accessed 7 October 2022
3. ^ Jump up to:a b Rothbard, Murray (1961). "The Fallacy of the 'Public Sector'". The Logic of Action Two, Application and Criticism from the Austrian School.[ISBN missing].
4. ^ Murray N. Rothbard (1998). "The Moral Status of Relations to the State", chapter 24 of The Ethics of Liberty. Humanities Press 1982, New York University Press 1998. ISBN 978-0-8147-7506-6.
5. ^ Ellickson, R. C. (2017). "A Hayekian Case Against Anarcho-Capitalism: Of Street Grids, Lighthouses, and Aid to the Destitute". NYUJL & Liberty, 11, 371.

• Barlow, J. Roehrich, J.K. and Wright, S. (2010). "De facto privatisation or a renewed role for the EU? Paying for Europe's healthcare infrastructure in a recession." Journal of the Royal Society of Medicine. 103:51–55.
• Lloyd G. Nigro, Decision Making in the Public Sector (1984), Marcel Dekker Inc.
• David G. Carnevale, Organizational Development in the Public Sector (2002), Westview Pr.
• Jan-Erik Lane, The Public Sector: Concepts, Models and Approaches (1995), Sage Pubns.
• A Primer on Public-Private Partnerships PFM blog: A primer on Public-Private Partnerships
• What is the Public Sector? Definition & Examples. (2016, June & July). Retrieved June 10, 2017, from What is the Public Sector? Definition & Examples