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)
Oh boy.
Re: “If anyone touches my 401k, which represents a large portion of my life savings, I would be willing to take up arms against the government. This would be the act that puts me right over the edge!”
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I’m sure you would not be alone — this might be the one issue that would really motivate American workers, you know, the taxpayers, to stand up and scream NO WAY!!! Let’s keep this front and center - yap about it all summer — can’t hurt come election time in Nov. ‘10!
Re: “This would be the act that puts me right over the edge!”
and....
“As a baby boomer putting off retirement, I absolutely agree.”
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YES! I’ve talked about this to a few middle of the road, not-interested-in-politics types who voted every which way in ‘08 — or not at all. Boy, are they riled up NOW!!!!! No one’s gonna touch THEIR retirement funds! Their outrage is great to see. Keep it going heading into this November...
bump
Very few vets retire, I believe the average is two tours of active duty (6 to 8 years). Many of our WWII, Korean and Vietnam vets did not even seek disability until later in life. There are free riders in society, in essence I am one, but I paid into society before I reached this point. The onerous free riders are the ones who have never contributed at all and still demand society care for them. Obama’s policies, are pandering to that group. By lumping all retirees, disabled and vets with the welfare queens, drug addicts and perpetually poor, he provides cover for his redistribution of wealth.
Then, I will find someone appropriately responsible, and do what I must.
Do it now...Don’t think too long on it...
Pay down your mortgage. That’s what I’m going to do with mine.
By pursuing this idea, they can get a huge infusion of cash without having to pass anything. They could even add a provision that forbids early withdrawal once the bill is passed. That would send people running for the exit and send cash streaming to Washington. Then they don't even need to bill to pass. Mission accomplished.
They might as well have an idea that anyone with over a million dollar in assets must immediately liquidate their 401k's and pay the early withdrawal penalty.
So I guess lose-lose is the wrong name; How about lose - lost? You lose if forced to withdraw early. Your money is lost if the government confiscates it.
RE: “If this happens, you realize that the next step is seizure of IRAs, and then your stock portfolio, don’t you?”
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Yes, and individual property ownership eventually won’t be allowed either == look for sixties-style Soviet apartment buildings (think big city tenements) where people are TOLD where they will live and with whom they will share a bathroom. This may seem over the top but whoever expected us to fall so far as we have already — and this fast????? Anything is possible now
“A government doled out LIMITED annuity all but ensures there will be a hefty balance in your 401K at your death. Then the vultures seize it as a Death Tax.”
You ain’t no dummy ;-)
IF you are retired and still have your 401K, then you are nuts.
‘If anyone touches my 401k, which represents a large portion of my life savings, I would be willing to take up arms against the government. This would be the act that puts me right over the edge! “
I am with you. Hopefully, about 30-35 million are with us too.
And a long time Freeper IIRC>
Capital controls are already in place:
It's Official - America Now Enforces Capital Controls (The Obama Fascists destroy Investing)
... so it is late in the game to move money outside of the country.
Then there's always the mattress..... which won't help much if the U.S. $ gets devalued. There are no easy choices out there right now for protecting the fruits of a lifetime of labor.
*TX, AZ, CO, ID, ND, SD, MO, TN, VA, NH (Oklahoma is close behind in the 2nd of 5 quintiles). Freedom In The 50 States: An index of personal and economic freedom. (http://www.statepolicyindex.com/?page_id=143). It was authored by William Ruger and Jason Sorens of the Mercatus Center of George Mason University (hat tip on this link to Windflier).
“Some people believe that armed citizens don’t stand a chance against an army, especially one as powerful as USA. This is the BS lie all governments around the world want you to believe, but the reality is very different.
If every block in the country, USA for example, has a dozen men with fire arms, the one that doesn’t stand a chance is the military force. It’s the perfect guerrilla setup, and a general’s worst nightmare.
You can’t nuke or level every block. You can’t arrest the entire country. The “fighters” are already armed, fed, spread out, integrated and infiltrated into the military and government branches. It’s impossible to win."
Fernando Ferfal Aguirre (SURVIVING THE ECONOMIC COLLAPSE )
Take note;; In the dream world of socialism, the average guy will not be permited to have emough income to save for the future, but will only be allowed to scrimp by until he is retirement? age when he will be allowed to continue to scrimp by,,,p-ss on him,0’b
I also don’t think the screaming over obamacare has even truly begun, let alone stopped.
When people start getting taxed beyond recognition and their elderly parents stop getting decent care by age 65, there will be wailing and gnashing of teeth.
Most people have no idea what is in store for them.
But mark my words, if they take the 401Ks, (mine anyway) someone is going to pay and pay BIG. I will not live like a pauper so liberals can feel good about themselves. “Mandatory retirement accounts!?” Am I still living in The United States or what?
Hey, that’s a hell of a book!
I wondered if he posted here and yes he does! Good for you knowing that. I agree, it is a hell of a book. Was very surprised at how young he was when he had to start dealing with the collapse. He is a very smart young man. (We are going to get your books, too. Want to check out that 100 pages on your site as soon as time permits.)
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