Unions Want To Take Over Your 401(k)

Money News ^ | 17 Mar 2010 | Gene J. Koprowski

[Titus Quinctius Cincinnatus]

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.

In effect, government pensions for everyone, not unlike the European system and regardless of personal choice.

The SEIU, which was integral to the election of Barack Obama as president, is working with the left-leaning Economic Policy Institute (EPI), and the National Committee to Preserve Social Security and Medicare, on SEIU's plan, called "the Retirement USA Initiative."

Claiming that the retirement system in place now has "failed most Americans," EPI vice president Ross Eisenbrey, told a labor union publication that "account balances have fallen by a third since late 2007, leaving many older workers unable to retire just as our economy is shedding millions of jobs.”

“The failure is broad and deep. It's not just a few people falling through the cracks: most of us already are in the ravine. Three in 10 have only a 401(k) or similar savings plan, and the rest of us are totally out of luck," said Eisenbrey.

Eisenbrey said that the median 401(k) account balance was $25,000 in 2006, and the median for workers near retirement was $40,000.

[Titus Quinctius Cincinnatus]

Wonderful. So all those who worked hard all their lives and saved can see their savings go into a Social Security-style "lock box" which will inevitably be raided to pay for big government giveaways. This is just a gimmick to create more dependency and provide more funds without having to actually vote for a tax increase.

Might be worth the penalty to pull your money out early, if they get serious about pushing this.

[petercooper]

http://www.freerepublic.com/focus/f-news/2478122/posts

[April Lexington]

Please to watch 401k industry collapse as smart people pay their taxes and hide what is left of their money from these communist sh*ts...

[mlocher]

I am going to supplement my 401(K) with a 357.

[AbeKrieger]

Might be worth the penalty to pull your money out early, if they get serious about pushing this.

Keep saying this, for real (a.k.a. non-SEIU) working people everywhere must be vigilant.

[MizSterious]

Yes, it would. Thanks for posting this—had been hearing rumblings about this, so it’s good to have an article to send to folks.

[luckystarmom]

That’s what social security is. These people are unbelievable.

[Red Badger]

Claiming that the retirement system in place now has "failed most Americans,"

Nope. Only the lazy stupid ones............

[old curmudgeon]

Perhaps this is what it takes to wake people up.

But I guess there are enough idiots in this country that think it is a good idea.

When you consider Obummer, the Marxist now posing as a Fascist, czars and the influence of the SEIU, this has a better chance than the health care plan had.

[tatsinfla]

i like your idea but i tried that already and the only way they will release my funds is if i quit my job or get fired....so i guess just before obama signs it into law i will quit my job and withdraw my money....

[RoadGumby]

I would love to, and will try. BUT, one may only close out a 401k AFTER leaving employment with the company that provides it. I’m not yet ready to do that, but will when pushed.

[TSgt]

I have to admit myself, I don’t think search is working...

[Red Badger]

...Three in 10 have only a 401(k) or similar savings plan, and the rest of us are totally out of luck," said Eisenbrey.

Yep, that's how it works, GRASSHOPPER..................

[Titus Quinctius Cincinnatus]

I did a search before posting and this article did not come up.

[swamprebel]

You don;t have to pay any penalities, or pull it out and be taxed. Just execute a 1035 rollover to a privately held annuity. Quickly, before it disappears like Jimmy Hoffa!

[George from New England]

Unfortunately for most folks the penalty is now greater than the tax benefit at the time the monies were contributed to the IRA account.

Govt robbery — how does the 357 protect IRA funds when they are captive?

[Red Badger]

But I guess there are enough idiots in this country that think it is a good idea.

The Moocher Class will ALWAYS think getting somebody else's money for "free" is a good idea...........

[Psycho_Bunny]

Nationalizing 401Ks would guarantee violence.

[petercooper]

I know it doesn’t always seem to work.

[rockinqsranch]

More continuation of the Leftist theme of redistribution. They are on a roll.