Next scare tactic: Unions want to take over your 401k

[grantcart]

Now that health care is over what will the right wing turn to next?

THE UNIONS WANT TO TAKE OVER YOUR 401K

Even at DU some will fall for the next scare tactic from the right.

Here are the facts. The AFL-CIO the SEIU and others are pooling their resources to review ways to improve and safeguard workers pensions and 401ks.

Here are their principles, as you can see they are all intelligent and responsible.

There is no proposal for a take over. There is a growing movement including SEIU and the AFL-CIO to improve the pension and 401k system for workers.

http://www.retirement-usa.org/

Here is who they are and their mission

Retirement USA is a national initiative that is working for a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for future retirees. The initiative has developed 12 Principles for a New Retirement System, which provide a framework for a future system in which employers, workers, and the government would share responsibility for the retirement security for all American workers.

* Retirement USA has been convened by five organizations – the AFL-CIO, the Economic Policy Institute, the National Committee to Preserve Social Security and Medicare, the Pension Rights Center, and the Service Employees International Union. These organizations have come together to raise awareness about the need for comprehensive reform for the future.
* A growing number of organizations are supporting the Retirement USA principles.

While the individual organizations involved in this effort are all committed to pushing the current system as far as it can go – preserving and strengthening defined benefit pension plans, promoting reforms to improve 401(k) plans, and expanding retirement plan coverage – we cannot ignore the fact that the current system, regardless of how many changes are made, will remain inadequate and insecure for millions of workers.



Here is their statement of principles:

Principles for a New Retirement System

Universal Coverage. Every worker should be covered by a retirement plan. A new retirement system that supplements Social Security should include all workers unless they are in plans that provide equally secure and adequate benefits.

Secure Retirement. Retirement shouldn’t be a gamble. Workers should be able to count on a steady lifetime stream of retirement income to supplement Social Security.

Adequate Income. Everyone should be able to have an adequate retirement income after a lifetime of work. The average worker should have sufficient income, together with Social Security, to maintain a reasonable standard of living in retirement.

***

Shared Responsibility. Retirement should be the shared responsibility of employers, employees and the government.

Required Contributions. Employers and employees should be required to contribute a specified percentage of pay, and the government should subsidize the contributions of lower-income workers.

Pooled Assets. Contributions to the system should be pooled and professionally managed to minimize costs and financial risks.

Payouts Only at Retirement. No withdrawals or loans should be permitted before retirement, except for permanent disability.

Lifetime Payouts. Benefits should be paid out over the lifetime of retirees and any surviving spouses, domestic partners, and former spouses.

Portable Benefits. Benefits should be portable when workers change jobs.

Voluntary Savings. Additional voluntary contributions should be permitted, with reasonable limits for tax-favored contributions.

Efficient and Transparent Administration. The system should be administered by a governmental agency or by private, non-profit institutions that are efficient, transparent, and governed by boards of trustees that include employer, employee, and retiree representatives.

Effective Oversight. Oversight of the new system should be by a single government regulator dedicated solely to promoting retirement security.

So expect to see some far out threads about how the Unions want to get their hands on your 401k.

So what are the specific changes? Don't know yet but they would like to hear your proposals:

http://www.retirement-usa.org/proposal/

[rocktivity]

1. Better labor than management.

rocktivity

[mdmc]

2. solidarity

thanks for the link. i tried to register there but could not get it to confirm..

[proud2BlibKansan]

3. kick

[Statistical]

4. If this new system is optional I have no problem.

I like my 401K. I like the money in my name.
Everytime I change jobs I roll 401K into my IRA. I pay taxes on it and convert it to Roth IRA = taxfree for life.

So if others want a new system I got no problem with that! More options never hurt worker/consumer

If they want to convert existing 401K "for my own good" and roll it into the universal plan with everyone else's money sorry no dice.

My wife's state pension has massive unfunded liability. The state of VA simply hasn't been putting in the money they promise they will so the value grows on retirement statement but the difference between what should be there and what is there is massive and growing.