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)
Ummm, wasn’t Social Security supposed to be a “Guaranteed Retirement Account”. We all see how well that turned out.
All the more reason to modify the AMT to that everyone must contribute 10% of their income and no “credits” or “earned income” will drop the amount of tax below that 10% requirement
bttt
Turn it into checks and get a locked security box at the bank. They'll have no idea what's in there.
the govt encouraged us to save and be more self sufficient...
the contributions to roths and 401's FUELED the stock market for the last 20 yrs...
as I see it, it was a great service to the country to have a group of people saving continuously and now they want to punish us for that?
besides....maybe there was a tax break with the 401 but not the roths...NOT THE ROTHS....
In which the ratchet clicks one more notch toward a second American Civil War.....
I honestly see no other way out.
Y’all?
“They said that they were going to do that right after obama assumed power. Limbaugh explained how they were going to work it.” ~ sport
Yep
http://www.freerepublic.com/focus/news/2506285/posts?page=52#52
Same here. This is serious trial balloon by the communists running our government. We must make waves or it will become a reality.
Bingo! And to think the family wonders why I am stockpiling food and ammo.
Look for massive cashing out of 401(k) and Roth accounts if this crap actually gains any traction. I’d rather pay a tax penalty than let them steal it, considering how well Socialist Insecurity, Mediscare, and MedicAIDS have gone.
I think Arizona is pretty much starting the secession movement.
If they’d just let the seceded states go,
there’d be no war.
But they can’t. It’s not something they are capable of - letting people live in freedom outside of their control.
I would not choose to live between Washington and Boston. That megopolis is a bag of snakes, in Bosnian comparisons. Ditto SoCal and many other major urban centers.
Here is an original source: US NEWS and World Reports - Money.
And here is a bit of precursor to the foregoing from MS Money Central in March of the same year.
But, what what must not be overlooked is that private property is the collateral for America's crushing debt. What do our foreign benefactors expect as collateral for trillions of dollars in debt? My son's job, my friend's house, your car, that guy's savings... etc., etc. This should help everyone to understand why the Supreme Court of the United States ruled a few years back that the government could seize private property for no more cause than the public good.
The govt seized privately-owned gold in the 30's, so the precedent is already established.
There are only two other paths out of this economic mess: inflation and/or HEAVY taxation.
“But they can’t. It’s not something they are capable of - letting people live in freedom outside of their control.”
######
Precisely, which is why I see this ending violently.
For the last 75+ years, with a brief slow down during the Reagan years, Conservatives have been relentlessly pushed toward the edge. This, across the board, on many economic and societal fronts. What happens when we FINALLY push back?
Entire sections of the USA could look like Bosnia X10.
Heh, I hear you. Here in Northern Virginia it has the potential to get down and dirty in short order, especially on the east side of 95.
Trial balloon, Rope-A-Dope by the head Dope. Another distraction while obama has a hand in our other pocket.
People in Boston were coming to blows over the last bottles of water in the stores. That is just a hint of things to come.
Our system has been broken longer than what we even realize. Republicans got us into this by continuing to barter/compromise with avowed enemies (democrats)all in the name of ‘reaching across the aisle’. Everything is now so tainted, so corrupt that a blood cleansing is the only way it’s going to get rectified. The longer that this is postponed the more entrenched the communists become. There are red flags popping up everyday and many are in complete denial; refusing to believe an overthrow is happening. I’m not sure anyone is going to ever take a stand just by the meer fact that no step has been taken to date.
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