Skip to comments.Administration Advances Plan to Federalize Private Pension System
Posted on 06/08/2010 7:41:05 AM PDT by gartrell bibberts
In February, the U.S. Treasury and Labor departments jointly announced they were seeking public comment on proposed design changes to employer-sponsored 401(k) plans and individual retirement accounts that would centralize the private pension system under structures created and administered by the government
At stake for the millions of Americans with private retirement plans: Would they be able to continue making their own investment decisions? Or would Congress mandate both investment options and distribution methods? Government Retirement Accounts also would prevent workers from owning their retirement savings fully, as they could bequeath only half of their remaining account balances to their heirs
. Teresa Ghilarducci, professor of economic policy analysis at the New School of Social Research in New York, is among those advocating Congress to remove favorable tax treatment for 401(k)s, which opponents say essentially would eliminate any reason for companies to offer these plans, and instead offer GRAs
. The Annual Report of the White House Task Force on the Middle Class, released in February, strongly favors automatic IRAs, annuitization, and GRAs (see Annual-report-middle-class.pdf). A July 2009 Government Accountability Office report on private pensions prepared for the House committee details the advantages and trade-offs of alternative retirement options currently under consideration (see GAO-09-642.pdf). [The GAO] report concludes that any centralization or nationalization of the private pension system, especially one that guaranteed a rate of return, may be a costly and complex effort that requires new regulatory and oversight efforts. These costs could be passed on to workers, employers, and taxpayers in general.
Government officials vociferously deny any intent to eliminate 401(k) or IRA investments in favor of a government-run system. Joseph Dewolk, a spokesperson for the U.S. Department of Labor, told Carolina Journal its inaccurate to say theyre looking to convert IRAs or 401(k)s to a government-run plan. I would refer you to the Request for Information because its just that, a series of questions to gather input from the public and others about our proposed rules. Its about making sure Americans can make their savings last. [hmmmm]
Time to start buying mason jars to bury in the back yard I guess.
Ping for later
We are rapidly becoming Venezuela.
Personally I hope the Dems try this. Added to Obamacare, Cap and Tax, and amnesty, it will sink the Dems (in general) and Socialists (in particular) for decades.
If you want a shooting war, touch my retirement money.
I will take up arms on this one. November csn’t come soon enough.
Ultimately, they want to take your retirement and fold it into Social Security.
Been a customer of the First Bank of Buried Mason Jar since Feb. 2009.
“Its about making sure Americans can make their savings last.
Come on . . . you can trust the government . . . /sarc
Liars, thieves and robbers!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
“Government officials vociferously deny any intent to eliminate 401(k) or IRA investments in favor of a government-run system. Joseph Dewolk, a spokesperson for the U.S. Department of Labor, told Carolina Journal its inaccurate to say theyre looking to convert IRAs or 401(k)s to a government-run plan.”
Of course they are not.
That comes later after it is too late to stop it.
Remember, progressives have learned to take it one step at a time.
I have no doubt that the government is going to try to close down any tax deferred mechanisms they can. They need the cash. Relatively few people save for retirement anyway and fewer in amounts to actually support themselves so this will not have much in repercussions. Eventually, those that are savers will do so in a non-tax deferred status where they have full control and to do otherwise opens one up to the risk of government abuse.
Exactly. They will spend it and a person will never receive it.
Government theft is the norm these days.
Even this liberal Supreme Court would rule this unconstitutional. If enacted, it would spell the end of the mutual fund industry and cost hundreds of thousands jobs.
So, of course, 90% of Americans oppose it, so I'm sure they're plotting a way to ram this down our throats, too.
I’ve said it before on other threads where this topic comes up. The Liberals/Progressives/Looters or whatever other name you can come up with have this overwhelming desire to steal this huge pot of money that is the 401(k)’s and various forms of IRA’s.
And we as the citizenry, need to keep fighting them at every turn.
I’m with you on this. Even my strongest Democrat associates would get pissed over this...
...because it actually effects their OWN wallet and not mine. Sad, but true.
However, if the Government moves to do this to 401k’s for people who have salaries above $X amount, then no one will care until it’s too late.
Wasn’t this the plan of Jess-—ie Jac——k—son????
Which is a government IOU for your retirement fund and nothing more.
I CAN SEE NOVEMBER FROM MY HOUSE!
Might I direct your attention to Kelo v. City of New London?
Absolutely false statement. Not even in the same universe as the truth. About 45% of Americans have some form of 401k/IRA
Bears repeating ;-)
So much for privatizing Social Security. It’s like we are going backwards in time, to the heady days of Hitler, Stalin, Mao and our very own FDR. It makes sense though. Private business and industry has either gone broke or moved, and the unions have no one to screw but the taxpayers. It’s how the thugocracy works.
Never forget KELO.
Also, this acting president pretty well ignores the Constitution and all the other rules that would apply to a real president. These people are revolutionary marxists plain and simple. They keep bringing up the idea of federalizing the country’s retirement funds, which seems to me that if there is a “crisis”, they would probably do it to solve the financial problems. (caused by them by the way). Imagine the most evil thoughts you can muster and you have reached the obama admin’s starting point.
Even if they announce it ahead of time, they will reap the heavy taxes of those still earning and in a high bracket, and also the penalty. But they probably would rather have the whole thing.
Brokers claim never to have heard of it. Maybe it is in their best interest to say that.
“So much for privatizing Social Security.”
Given what has happened to the markets over the last decade, this idea is dead for another 80 years or so.
If they pass this, they will do it between election day and the end of the session, probably on Christmas Eve.
Thanks for posting. BTTT!
Its almost worth taking a hit than to let this gov. take over it!
Over my dead body.
Do they want to start a new revolution in this country? The Feds screwed up by instituting Social Security and every other entitlement. This administration has taken the major radical leap left into full blown socialism and doesn’t care how it effects us.
Yup, gov. broke. They need the money now! Damn the future. Same goes for the health care bill. They need the money now!
This has been a major “plank” in the Socialist’s agenda for over 30 years - just waiting on getting the power...which they now have.
Ultimately, they want to take YOUR retirement money
and give it to their union buddies.
In the final stages of currency collapse,
the government will look for any “legitimate” means
to continue to prop up their facade of a valid currency.
If this goes any further steps in that direction,
it’s time to cash out of your IRAs, take the penalty, and buy gold to ride through the collapse and rebuild.
To a leftist, a “revolution” will be an excuse to use the power of the state to kill their political opponents.
What’s it going to take to trigger CWII?
If i was a policy maker and was working to nationalize private IRA accounts, it would cross my mind that some justly angry people might consider me a legitimate military target.
But thats probably just me,,,,
And what power they have. They are going to use it too. They will never have another chance like this again.
They will do it too. And the American Public will do nothing but take it.
At the current pace, we may find out sooner rather than later.
If you haven’t liquidated your 401k and/or IRA and converted the FRNs to ... a solar-powered Blu-ray player, you’re a fool...
Bears repeating ;-)
Affirmative. I truly believe Obama, Pelosi, Reid, etc. all want Americans to rise up and attempt to fight them with weapons. I think that's what they're waiting for and counting on. Then, martial law will ensue and they can take over completely, without having to wait, pretend to be nice, or to endure any more bogus, ACORN-finagled elections. It's part of the plan and I'm betting they're sitting there wondering why their plan hasn't worked yet.
What do you have to lose at that point?
Freedom is just another word for nothing left to lose.
I like it.
Permission to steal?
Grand theft that ain’t so grand...
We can see November 2012 from ours. ;^)
Sure - it’s not mine anyway. Got it from Barry Young on KFYI.