WP: House Democrats To Offer Proposal for Retirement Savings

[DeepModem Mom]

House Democrats To Offer Proposal for Retirement Savings
By Mike Allen
Washington Post Staff Writer
Tuesday, July 26, 2005; Page A08


House Democrats intend to propose a retirement-savings plan today that will be their first leadership-backed alternative to Republican plans for a broad retirement-security package, which includes changes to Social Security.

The Democratic plan, called AmeriSave, would increase incentives for middle-class workers to participate in 401(k) retirement accounts and individual retirement accounts. It would also create tax credits for small businesses that set up retirement accounts for their employees.

While Democrats have debated whether it is in their interest to propose an alternative to President Bush's plan to add individual accounts to Social Security, Republicans have asserted that the Democrats have no plan. House Democrats say they will not issue a Social Security plan until Bush takes any form of privatization off the table.

House Democratic leader Nancy Pelosi (Calif.) said her party is "fighting to strengthen and safeguard Social Security's guaranteed benefit but more must done so that every American has the opportunity to build a secure retirement." She said the plan "will build retirement security by expanding opportunities to save and guaranteeing workers receive the benefits that they have been promised."

The AmeriSave announcement is designed to partially preempt Ways and Means Committee Chairman Bill Thomas (R-Calif.), who plans to focus on retirement security in September. Bush had proposed adding individual accounts to Social Security for younger workers, but the idea did not win public support. He has now started talking about his plan as "senior security."...


http://www.washingtonpost.com/wp-dyn/content/article/2005/07/25/AR2005072501455.html

[bemildred]

1. Make corporations fund their pension plans adequately. Do that first. nt

[papau]

3. The funding bill is in almost final form and moving toward passage.

I posted a status update in the DU legislative forum.

[bemildred]

4. Does it have "teeth"? nt

[papau]

6. Yes - indeed the objection is that it may drive folks frome defined

benefit plans and into 401k type plans (money purchase and profit sharing are the buzz words for plans that do not require a great deal of, or any of, respectfully, of the employer's money).

But the PBGC deficit is scaring folks so that this will pass.

[trogdor]

8. FWIW...

...what with all the big old companies going tits up and leaving their pensioners to twist in the wind, perhaps it's just as well that we go toward 401K type plans. This might make me sound like a neocon, but at least that money belongs to ME. Promises made by the likes of General Motors, American Airlines, etc., do not carry the same weight as those made by the United States Government (which also belongs to ME in some sense).

[SharonAnn]

15. Not for long. Who manipulates the stock market? Clue - not us.

But the Bush cronies do.

[bemildred]

11. Thanks. nt

[mknmehappy]

9. Make corporations fund pension plans?

How? Explain.

[JerseygirlCT]

10. Well, perhaps those plans move to the top of the list

when paying creditors. Before the execs get their golden parachutes or any bonuses whatsoever.

Just a thought.

Hey, go farther and hold the CEO and board responsible for fully funding the plans. Skimp and look at jail time. Perhaps that would wake 'em up?

[DeepModem Mom]

14. Hi, mknmehappy -- welcome to DU!

[papau]

2. This is the Dem "add-on" plan but with no new payroll "contribution"

It is therefore a great deal more simple, and solves the savings incentive need we all agree is out there.

The GOP can say it is not the "add-on" payroll tax system plan that they opposed.

Seems like good government and good politics.

[flaminbats]

5. Republicans can no longer claim we oppose IRAs..

we only oppose mandatory accounts from those who pay taxes! Republicans can call us obstructionists all they want, but they're now the ones opposed to a solution.

[papau]

7. True - we have a valid savings solution! :-)

:-)

[InkAddict]

12. How about a plan to employ Americans

long enough in America to be a participant in a 401K plan???

[SoCalDem]

13. and to pay them enough so they can spare the $ to participate?

The silly thing here is that people USED to save money. Why don;t they now? Because WAGES have not kept up with the cost of living, and it takes more and more money to live like people are expected to live these days.. There used to be very little credit. people saved for a refrigerator..a car.. a house..

Plastic changed it all.. Employers felt "off the hook" for raises, because the employees could just "charge it" for whatever they wanted.

Years ago, if the family needed stuff, Dad felt the pressure and might just ask the boss for a raise, or remind him that it had been a while since the last raise..