**
Dr. Eowyn posted: "In a post nearly a year ago, I sounded this warning:
The governments of five European countries — Hungary, Poland, Bulgaria,
Ireland and France – have taken over their citizens’ private pension money
to make up deficits and budget shortfalls. Gi" Respond to this post by
replying above this line
New post on *Fellowship of the Minds*
<http://fellowshipofminds.wordpress.com/author/eowyn2/> U.S. federal-state
governments are moving to eliminate private pensions and retirement
plans<http://fellowshipofminds.wordpress.com/2012/11/27/u-s-federal-state-governments-are-moving-to-eliminate-private-pensions-and-retirement-plans/>
by
Dr. Eowyn <http://fellowshipofminds.wordpress.com/author/eowyn2/>
In a
post<http://fellowshipofminds.wordpress.com/2011/01/04/5-european-governments-seize-private-pensions/>
nearly
a year ago, I sounded this warning:
*The governments of five European countries — Hungary, Poland, Bulgaria,
Ireland and France – have taken over their citizens’ private pension
moneyto make up deficits and budget shortfalls. Given the American
Left’s
oft-stated admiration for Europeans, who are further down the ruinous road
of socialism than the United States, this should sound the alarm for all
Americans who want to hang onto our private pensions and savings.*
That was not paranoia speaking because a year before, *in January
2010, *Bloomberg's
*Business Week* had
reported<http://fellowshipofminds.wordpress.com/2010/01/09/obama-hands-off-my-retirement/>that
*the Obama administration wanted to convert all 401(k) savings and
Individual Retirement Accounts (IRAs) into annuities or other steady
payment streams.*
*Business Week* also reported that the Treasury and Labor Departments was
planning to solicit the public's reaction, although a report by the
Investment Company Institute had already found that Americans oppose any
government initiatives that would force us to give up control over our
401(k) accounts. Seven in 10 U.S. households indicated they wanted to
preserve their present retirement account features and flexibility, and
objected to the idea of the government requiring retirees to convert part
of their savings into annuities that supposedly guarantee a steady payment
for life.
Now, it appears *the Obama administration and America's various state
governments indeed are moving to get rid of private pensions and retirement
plans.*
Linda Stern reports for
Reuters,<http://www.reuters.com/article/2012/02/29/us-column-personal-finance-idUSTRE81S1ZQ20120229>Feb.
29, 2012, that baby boomers may be the last generation to retire with
401(k) plans. A week before, *a hearing on the future of pensions and
retirement was held in the U.S. Senate*, attended by representatives of
unions, employers, financial services providers, government agencies and
consumer groups. The only thing they all seemed to agree on was that the
401(k) plan has been sort of a failure, which is a most curious consensus,
given the fact that current and future retirees have successfully amassed
some $4.3 trillion in 401(k) and other defined contribution accounts.
Stern reports that "policymakers are now looking beyond the once-vaunted
401(k) because it has two significant shortcomings: (1) It's not powerful
enough to secure the retirements of low-income workers who can't afford to
stash away enough money; and (2) It leaves each accountholder alone to
manage risks." Without being able to pool risk, participants have to settle
for lower returns and lower withdrawals. That, in turn, reduces the amount
that they can spend in retirement, and reduces the likelihood that their
money will last until they die.
Blah, blah, blah.
In other words, *there is a rising crescendo of voices calling for the
conversion of privately-managed 401(k) and IRAs in favor of Government
Retirement Accounts (GRAs)* -- government-managed retirement instruments
like annuities that "promise" to "guarantee" retirees a "steady stream of
retirement income" that'll last until they die.
Sounds just like Social Security, doesn't it? The government takes money
out of our monthly paychecks and puts it into our separate Social Security
accounts. In return, when we retire, we'll get a Social Security check
every month until we die.
*And we all know how well that turns out.*
Stern concludes her report for Reuters by warning that policy changes down
the road could change the shape of our retirement savings significantly
because "everything from a curtailing of 401(k) tax breaks to new state-run
programs is under consideration somewhere, by somebody."
A NewsMax report <http://www.goldworth.com/newsmax.php> describes the
latest move towards replacing private pensions and retirement plans with
Government-run Retirement Accounts (GRAs):
*The Latest move can be found in the Obama Administration`s, 256 page- FY
2013 Budget Proposal. The revival of his 2008 presidential run, the
“Automatic IRA” which has now “Evolved” into two proposals:*
*Secure Choice Pension & Government Retirement Accounts (GRA’s), both of
which automatically “Mandate” 5%-6% contributions into Government Run
Pension funds.*
*One feature of GRAs is once a participant dies, the uncollected equity
belongs to the government. It’s no wonder the Retirement age for GRAs will
be 67, and one proposal calls for 69 years of age. They’re “off the hook”
as soon as you're dead.*
*Another change to the retirement account laws, the Tax Benefit. The
current Tax Deduction will be replaced with a "Credit", which is only
redeemable after retirement. To be Eligible for the Tax Credit, you will be
given the “Option” to place Your Equity into Annuities composed of U.S
Treasury Bonds, that will payout an estimated 3% annually.*
*Yes, you`ll be Investing/Buying what China No longer wants, U.S.
Debt(Treasury-Bonds). [...]
*
*No matter who wins [the 2012 presidential eleciton], our government is
Neck-Deep in Debt. When faced with the Reality of a Complete government
Collapse… a Politician will do, what a Politician, needs to do! The $4.6
Trillion in IRA’s and the $4.3 Trillion in 401(k)s … are all too tempting!*
*Some legislators already have introduced bills toward transforming
Americans' private pensions and retirement accounts into Government
Retirement Accounts (GRAs):*
- S. 1020: Saving Enhancement by Alleviating Leakage in 401k Savings Act
of 2011 <http://www.govtrack.us/congress/bills/112/s1020/text> - A U.S.
Senate bill introduced on May 18, 2011, by senators Herb Kohl (D-WI)
and Mike Enzi (R-WY). If approved, S. 1020 would "amend the Internal
Revenue Code of 1986 to modify the rules relating to loans made from a
qualified employer plan, and for other purposes." In other words, S. 1020
(or the federal government) would impose restrictions on how 401(k)
owners can access the money accumulated in their accounts. You wouldn't
even be able to borrow from your own 401(k) account!
- California state bill, SB 1234: Golden State Retirement
Trust<http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1201-1250/sb_1234_bill_20120223_introduced.html>-
A bill introduced on February 23, 2012, by California congressman
Kevin
De Leon, to replace private pensions and retirement accounts with GRAs.
Here's a quote from SB 1234: "Existing federal law provides for
tax-qualified retirement plans and individual retirement accounts or
individual retirement annuities by which private citizens may save money
for retirement. This bill would establish the Golden State Retirement
Savings Trust Act, which would create the Golden State Retirement Savings
Trust that would be administered by the Golden State Retirement Savings
Investment Board, which would also be established by the bill. The bill
would require eligible employers, as defined, and would authorize other
employers to enroll eligible employees, as defined, into an
employer-sponsored retirement plan or pension plan, as specified, offered
by the trust, or a personal pension in the case of a nonparticipating
employer, as specified. The bill would require a specified percentage of
the annual salary of an eligible employee participating in the retirement
or pension plan to be deposited in the Golden State Retirement Savings
Trust, which would be segregated into a program fund and an administrative
fund, both of which would be continuously appropriated to the board for
purposes of the act. The bill would limit expenditures from the
administrative fund, as specified."
- Connecticut state bill HB
5337<http://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05337>:
An act "to create a task force to study the need for a public retirement
plan," introduced on May 6, 2012, by Lauren Schmitz, a research analyst at
the Bernard L Schwartz Center for Economic Analysis, the very same
institution that had originated the GRA concept.
- Other states such as, Massachusetts, Florida and Ohio have made or are
actively conducting moves such as GRA’s.
*~Eowyn*
*Dr. Eowyn <http://fellowshipofminds.wordpress.com/author/eowyn2/>* |
November 27, 2012 at 12:14 pm | Tags:
annuities<http://fellowshipofminds.wordpress.com/?tag=annuities>,
Bernard Schwartz Center for Economic
Analysis<http://fellowshipofminds.wordpress.com/?tag=bernard-schwartz-center-for-economic-analysis>,
Connecticut <http://fellowshipofminds.wordpress.com/?tag=connecticut>, Golden
State Retirement
Trust<http://fellowshipofminds.wordpress.com/?tag=golden-state-retirement-trust>,
Government Retirement
Accounts<http://fellowshipofminds.wordpress.com/?tag=government-retirement-accounts>,
GRA <http://fellowshipofminds.wordpress.com/?tag=gra>, HB
5337<http://fellowshipofminds.wordpress.com/?tag=hb-5337>,
Herb Kohl <http://fellowshipofminds.wordpress.com/?tag=herb-kohl>, Individual
Retirement
Accounts<http://fellowshipofminds.wordpress.com/?tag=individual-retirement-accounts>,
Investment Company
Institute<http://fellowshipofminds.wordpress.com/?tag=investment-company-institute>,
Lauren Schmitz <http://fellowshipofminds.wordpress.com/?tag=lauren-schmitz>,
Mike Enzi <http://fellowshipofminds.wordpress.com/?tag=mike-enzi>, S
1020<http://fellowshipofminds.wordpress.com/?tag=s-1020>,
SB 1234 <http://fellowshipofminds.wordpress.com/?tag=sb-1234> | Categories:
Economy <http://fellowshipofminds.wordpress.com/?cat=17656840>,
Liberals/Democrats/Left<http://fellowshipofminds.wordpress.com/?cat=115894710>,
Obama <http://fellowshipofminds.wordpress.com/?cat=376320>, Obama's
America<http://fellowshipofminds.wordpress.com/?cat=12285619>,
Republican Party <http://fellowshipofminds.wordpress.com/?cat=56189>,
Taxes<http://fellowshipofminds.wordpress.com/?cat=34919470>,
United States <http://fellowshipofminds.wordpress.com/?cat=5850>, US
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