Posted on 05/04/2010 7:43:39 AM PDT by ConjunctionJunction
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 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.”
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 government-run 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.
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)
Government and their unions? A relationship made in hell.
Yep. The fast track to socialist ruin and collapse. Ask the Greeks.
I agree. When our system is working correctly, we get a safety-valve every 2 years where we can make our feelings known and alter the political landscape, and keep the country on track.
But the system isn't working correctly -- I think the safety-valve is broken. The Democrats want bigger government. The Republicans want the same thing too. In November 2010, the names in Congress will change, but I don't see any way for us to be out of the woods through the electoral process.
I'm convicned that many people feel this way. At some point (I hope) someone will take a stand, and then I think we may find that this country is a powder keg. Our current Cold War against tyranny will become Hot, and many citizens will "go hunting".
No need to come to your door. They will rob you electronically.
In other words: Stand up and be counted! OR Line up and be numbered!
PING!
Remember the old Mission Impossible intro theme???
Greece may be the match that lit the fuse...
Gunshow this weekend...;-)
I suspect most of the people in NYC who voted for Obama are unhappy because the Health Care “Reform” bill didn’t have single payer. That is, it wasn’t socialist enough.
I can’t see that translating into Republican Votes.
why do it?....I too have not had the fancy vehicles, the Ipods, the trips, the vacation homes etc because I thought it best to provide for my own retirement PLUS leave a little something for the kids....
it has hurt the tax situation...
but I am a little too young to pull it out...and that begs the question...where do you put it?...anywhere you have it it could be available to the feds...
I am just hoping that people will vote out this regime.
Lines are drawn. Cross one and it's time to roll.
Mine is not a conversion; it was a Roth from the start, so penalties should be less to withdraw, except for the gain.
Just like they voted with the Democrats for health care deform? A lot of them may be establishment swine, but I think they deserve a little more credit than you're giving them.
As for Obama voters suffering, I'm with you on that one, although I don't like the idea of my mom, my stepmother, and my aunt being among them.
I remember my brother 30 yrs ago asked his finacial guy about these “free” govt ira’s etc...he told him the govt doesn’t give away anything for free...prophetic....
They said that they were going to do that right after obama assumed power. Limbaugh explained how they were going to work it.
Real estate does not transfer over the border easily.
Union boys can't pull up their own pants.
This would be a legitimate reason to let blood flow !
Man this pisses me off. HENRY BOWMAN WHERE ARE YOU! START FEEDING THE HOGS ALREADY!
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