Skip to comments.New Ideas on Pensions: Use States (Teresa Ghilarducci strikes again!)
Posted on 03/27/2012 2:29:30 AM PDT by abb
As growing numbers of baby boomers face retirement with inadequate savings, some state officials are considering a novel proposal to rebuild Americas ailing retirement system having state pension funds run retirement plans for companies.
Because more companies are ditching their own pension plans or not offering retirement benefits at all, the idea would be to give companies a way to offer a firm pension without having to run the plan themselves.
On Monday, the labor economist Teresa Ghilarducci, who developed the proposal, held a public forum at the New School for Social Research with New York Citys comptroller, John Liu. The forum explored whether companies might want to start offering pensions through a pooled system run by the Bureau of Asset Management, a unit of the comptrollers office.
Mr. Liu said he was interested because New York City was in the early stages of a burgeoning retirement crisis, where more than a third of all retirement-age households had nothing to rely on except Social Security.
He said that more elderly people were turning up in the citys homeless shelters and that a program to make it easy for employers to offer better retirement benefits might reduce future strain. Lawmakers in Connecticut and California have introduced bills to either study or create such a program and the Pennsylvania state Treasurer has expressed interest, although he has no power to introduce legislation himself. Mr. Liu said he had talked to lawmakers, but had no firm legislative plans.
At the heart of the proposal is something called a cash-balance pension, a hybrid that combines features of a 401(k) plan with those of a traditional pension plan. Workers can watch their benefits grow each year as an account balance, but the assets that secure the benefits are held in a pooled trust.
(Excerpt) Read more at nytimes.com ...
Death of the private retirement fund. Get out of the peoples business and let private companies guide people toward investments. Union plans are a ponzi scheme. The government who gives you something has the same right to take it away from you. You can watch your balance grow....but you cannot touch it........LOL!
401(k) Foe Teresa Ghilarducci, the Most Dangerous Woman in America
The New School of Social Research tells me all I need to know. I’ve been reading about her ideas for years..and they will cause me to take up arms if they even try. Hands off my 401K, madam.
oh please spare me
one needs only to look at the mismanagement of state pension funds to get an idea of what will happen should states be given conservatorship
specific reference: Calibrokeifornia
Exactly. They have done so well in managing their pension systems I want them to run mine.
Dont Cut Pensions, Expand Them
By TERESA GHILARDUCCI
Published: March 15, 2012
Yes New School (the Bob Kerry hangout) is a nothing more than a RAT think tank masquerading as a university. Tells us all we need to know.
Does this mean that we will all be able to retire at age 40, with 80-100% of our peak salary coming to us for the rest of our lives? Is that the model that will be put in place?
And at no cost to anybody, it’ll all be free. Along with free health care, free Day Care, Early Childhood, Head Start, K-12 and college education. Reduced cost mortgages, whether you can afford them or not, subsidized solar electricity and 100 mpg hybrid cars. All free, free, free! Free Bubble-Up and Rainbow Stew, as well. Heck, we’re borrowing the money, so no one has to pay. Let’s get it all!
Governments are financial wizards in the same way they are efficiency and cost-cutting wizards. They’re not.
I was looking for a video of this woman but I couldn’t remember her name.
New School is a Commie School, nothing more, nothing less.
That's enough reading to know this is another bolshevik grab for control.
All I ever wanted was a free pony but I learned a long time ago that I'm the guy who buys free ponies for others.
And the 401K is a similar thing. It will collapse once enough people hit retirement. Hate to say it, but we are made to work till we can't, not have a second adolescence.
or to put all that into easy to digest sound byte form...
THEY ARE GONNA STEAL YOUR 401K TO PROP-UP FAILING UNION PENSION FUNDS, AND MAKE IT LOOK AS IF THEY ARE DOING YOU A FAVOR IN THE PROCESS.
hey, they severely restricted your ability to take 401K hardship withdrawls last year.
Methinks they did so for a reason.
what did they change?
That's worked SOOOOOO well here in Illinois.
Forward Gallop · SubscribeSubscribed · Works at Teamsters Local 320 Taxpayers United of America is another one of those shady 'AstroTurf' groups funded by America's largest corporations. Why would anyone want to lose their pension for a 401(k)? Under a defined benefit plan or a pension, the investing is done for you and you are guaranteed your retirement benefit. That benefit is calculated by your salary and time served. Your pension is guaranteed for the rest of your life. A defined benefit is best for those who are unfamiliar with investing or playing the stock market, and want a guaranteed retirement. The 401(k) plan, or defined contribution, is only worth the money it gains or loses. Because defined contributions rely on the market, you could double your investments, or you could lose it all only a few years before you retire. Your benefits are defined by how well your investments did, and will end when the money is spent. Defined contribution plans are best for those who are wise investors and like to roll the dice by playing the market.