Unions Want to Take Over Your 401(k)

Going viral:

3/25/10

“Unions Want Fed Help with Pension Funds (Barf Alert)”

http://www.freerepublic.com/focus/f-news/2479612/posts

This is America! Whatever they do, you know you’re free. Are you not going to be able to choose what beer to drink or what sports to watch?

Why would Iran want to do this to us? I think the answer to this is to nuke Mecca!

One of the nation's largest labor unions, the Service Employees International Union (SEIU), is promoting a plan that will centralize all retirement plans for American workers, including private 401(k) plans, under one new "retirement system" for the United States.

Because the current government run "retirement system", Social Security, is doing so well. LOL!

Claiming that the retirement system in place now has "failed most Americans," EPI vice president Ross Eisenbrey

I wonder if any of FR's EPI fans will agree with this idea?

You’ve been right over the target:

3/26/10

“Obama ally targets 401(k) dollars
Trillions in IRA funds could be forced into U.S. Treasury debt”

http://www.wnd.com/index.php?fa=PAGE.view&pageId=132061

“...Moreover, with the Obama administration needing to raise nearly $1.5 trillion just to cover this year’s anticipated federal budget deficit, and with the Federal Reserve discontinuing efforts to purchase U.S. Treasury debt, the Obama administration is looking at 401(k) and IRA accounts as trillions of dollars that could be forced into Treasury bonds to finance the federal budget deficits.

Given that the Federal Reserve has now phased out its direct purchases of Treasury debt, the Obama administration is anxious to find another market upon which to unload hundreds of billions of dollars of Treasury bonds carrying yields much lower than would be required if they were sold in the open market. ..”

Unfortunately, I think the problems with Social Security will be put forward as an argument for this nonsense. I don't know if this release was deliberately timed to coincide with the news of this year's Social Security deficit, but I'm sure it will be used to give SEIU's scheme some added momentum.

Now, I haven't seen any direct quotes from the SEIU advocating outright seizure of 401(k)s (not that they'd be opposed), but at the very least a "Cadillac retirement plan" tax would fit right into the left's current logic.

Leftists are thieves, liars and murderers.

I trust them with my money as much as I trust them with my life or with my freedom.

That is to say, I trust them to bend every effort toward destroying all three.

Republicans Sound Alarm on Administration Plan to Seize 401(k)s - HUMAN EVENTS 5/4/10 6:07 AM
http://www.humanevents.com/article.php?print=yes&id=36823 Page 1 of 4
Republicans Sound Alarm on Administration Plan to Seize
401(k)s
by Connie Hair (more by this author)
Posted 05/04/2010 ET
Updated 05/04/2010 ET
In February, the White House released its “Annual Report on the Middle Class”
containing new regulations favored by Big Labor including a bailout of critically
underfunded union pension plans through “retirement security” options.
The radical solution most favored by Big Labor is the seizure of private 401(k) plans for
government disbursement — which lets them off the hook for their collapsing
retirement scheme. And, of course, the Obama administration is eager to accommodate
their buddies.
Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts”
(GRAs), in the February “Middle Class” report.
In conjunction with the report’s release, the Obama administration jointly issued
through the Departments of Labor and Treasury a “Request for Information” regarding
the “annuitization” of 401(k) plans through “Lifetime Income Options” in the form of a
notice to the public of proposed issuance of rules and regulations. (pdf)
House Republican Leader John Boehner (Ohio) and a group of House Republicans are
mounting an effort to fight back.
The American people have become painfully aware over the past year that elections
sometimes have calamitous consequences. Republicans lack the votes (for now) to
reign in the Obama administration’s myriad nationalization plans for everything from
health care to the automobile industry.
Now the backdoor bulls-eye is on your 401(k) plan and the trillions of dollars the
government would control through seizure, regulation and federal disbursement of
Republicans Sound Alarm on Administration Plan to Seize 401(k)s - HUMAN EVENTS 5/4/10 6:07 AM
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mandatory retirement accounts.
Boehner and the group are sounding the alarm, warning bureaucrats to keep their
hands off of America’s private retirement plans.
Just when you thought it was safe to come up for air after the government takeover of
health care.
The entirety of the House GOP Savings Recovery Group letter outling the issue that
was sent last night to the Labor and Treasury secretaries:
The Honorable Hilda L. Solis
Secretary
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, DC 20210
The Honorable Timothy Geithner
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20210
Dear Secretaries Solis and Geithner:
As members of the Republican Savings Solutions Group, we write today to express
our strong opposition to any proposal to eliminate or federalize private-sector
defined contribution pension plans, such as 401(k)s, or impose burdensome new
requirements upon the businesses, large and small, who choose to offer these
plans to their employees.
In the Annual Report of the White House Task Force on the Middle Class, Vice
President Biden discussed at length the creation of so-called “Guaranteed
Retirement Accounts, (GRAs)” which would provide for protection from “inflation
and market risk” and potentially “guarantee a specified real return above the rate
of inflation” — presumably at taxpayer expense. In the Report, the Vice President
recommended “further study of these issues.”
Republicans Sound Alarm on Administration Plan to Seize 401(k)s - HUMAN EVENTS 5/4/10 6:07 AM
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The Vice President’s comments are troubling, insofar as they come on the heels of
testimony before Congress from supporters of GRAs proposing to eliminate the
favorable tax treatment currently afforded to 401(k) plans, and instead use those
dollars to fund government-invested GRAs into which all employees would be
required to contribute a portion of their salary — again, with a government
subsidy. These advocates would, essentially, dismantle the present private-sector
401(k) system, replacing it instead with a government-run investment plan, the
size and scope of which remain to be seen. This despite data showing that 90
percent of households have a favorable opinion of the existing 401(k)/IRA system.
In light of these facts, we write today to express our opposition in the strongest
terms to any effort to “nationalize” the private 401(k) system, or any proposal that
would dismantle or disfavor the private 401(k) system in favor of a governmentrun
retirement security regime.
Similarly, and more recently, the Departments of Labor and Treasury have jointly
issued a “Request for Information” regarding the “annuitization” of 401(k) plans
through “Lifetime Income Options.” While we appreciate the Departments’
seeking guidance and information from all parties and stakeholders in advance of
regulatory activity, we strongly urge that the Departments not proceed with any
regulation in this area before they have carefully and thoroughly considered all of
the information received.
More specifically, we urge that the Departments take no action to mandate that
plan sponsors — often, small businesses — include a “lifetime income” or
“annuitization” option if they choose to offer a 401(k) plan to their employees, or
that beneficiaries take some or all of their retirement savings in such an option.
Data shows that 70 percent of Americans oppose the concept of a mandated
annuity or government payout of their 401(k) plan. On a more fundamental level,
Congress should not be in the business of choosing “winners” and “losers” among
retirement security stakeholders. Instead, we urge the Departments to make it
easier for employers to include retirement income solutions in their savings plans
and to help workers learn more about the value of their retirement savings as a
source of retirement income. Finally, to the extent new mandates and
bureaucratic red tape from Washington push small employers out of the business
of offering these plans to their employees, we would submit such an effort
weakens, rather than strengthens retirement security.
Republicans Sound Alarm on Administration Plan to Seize 401(k)s - HUMAN EVENTS 5/4/10 6:07 AM
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weakens, rather than strengthens retirement security.
We appreciate your consideration of our views in these important matters and
stand ready to work with you and the Administration to promote secure and
adequate retirement savings for all Americans.
Sincerely,
House Republican Leader John Boehner (R-OH)
Rep. John Kline (R-MN)
Rep. Dave Camp (R-MI)
Rep. Sam Johnson (R-TX)
Rep. Dean Heller (R-NV)
Rep. Brett Guthrie (R-KY)
Rep. Michele Bachmann (R-MN)
Rep. Pat Tiberi (R-OH)
Rep. Bob Latta (R-OH)
Rep. Erik Paulsen (R-MN)
Rep. Lynn Jenkins (R-KS)
Rep. Ed Royce (R-CA)
Rep. Buck McKeon (R-CA)
Connie Hair is a freelance writer, a former speechwriter for Rep. Trent Franks (R-AZ) and a
former media and coalitions advisor to the Senate Republican Conference.
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The Federal Government really doesn’t want us taking care of our own mortgage, utilities, retirement, savings.... Anytime we do the right thing, we are taxed and punished for being responsible. My husband is gone to work every day for 12-14 hours, and could have retired several years ago. He works long hard hours to save up for retirement. We drive old cars, we save, for retirement.....

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