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  1. #1
    hunter18372 is offline Junior Member
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    Kiss your pension and 401k's good bye?

    Ok for those of you that believe that gov't can 't get worse here's a little information.
    One of the house sub committee on finance (I will post the exact one and chair monday) had a hearing with some talking head (probably one of Ayers friends who signed petition supporting him) on the Federal Govt. taking over pension plans and 401 K's. The GOVERNMENT would control YOUR money and dispense it with your monthly social security check.
    If you're one that happens to die the GOVERNMENT WILL TAKE 1/2 OF THE MONEY IN YOUR PENSION leaving your benificiaries with only half of YOUR MONEY. The Dem chair person was extremely interested in what he heard !
    The scheme getting govt hands on pension funds I heard was along time back out of the mouth of Jessie Jackson. Now pay attention to a quick lesson in economics 101. The Gov't has a huge debt coming due when the baby boomers retire. The money is not there ,it's been long spent hence the estimates from 55 -100 trillion in debt the Govt already has. The only way to cover this debt would to let the Fed print more money but the funds needed would devalue the dollar we would look like Germany in the 20's when you needed a wheelbarrow full to buy a loaf of bread. There is an immense amount of money in 401k's and pension funds that is already in the pipe line ,so printing more wouldn't be needed.
    I belong to a smalll Union local with more than 40 million in that fund last I looked and that was over 16 years ago. The interest on that money alone pays for any funds being dispersed to retired members. Our union was far sighted enough to start a additional retirement 401 K individual accounts in the early 80's at that time we started putting $432 a week into these 401's many members if the worked steady all this time have 500,000 or much more. Times this by all the people with pension and 401's you know dam well the Gov't somehow is going to make this happen.

  2. #2
    bruce333's Avatar
    bruce333 is offline HGF Forum Moderator
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    Moved to off topic.

    for your sources.

    You do know the Pension Benefit Guaranty Corporation already controls the pensions of about 1,305,000 people (3,793 pension plans).
    Bruce, Life Member: NRA, NCRPA, GRNC, GOA

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  3. #3
    kev74's Avatar
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    I've been hearing about this through the rumor mill, but as of yet haven't seen anything about it on the news. Do you have any sources/links for this, or is it just more pre-election panic?

  4. #4
    js's Avatar
    js
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    Congress mulls major 401(k) changes
    A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.

    Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.

    This was suggested by the chairman of the House Committee on Education and Labor.
    “With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said.

    “We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks allowed for 401(k) contributions and savings.

    With savings rates going down, “what do we have to start to think about in Congress of whether or not we want to continue and invest that $80 billion for a policy that is not generating what we … say it should?” Mr. Miller said.
    Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.

    When workers collected Social Security, the guaranteed retirement account would pay an inflation-adjusted annuity under her plan.

    “The way the government now encourages 401(k) plans is to spend $80 billion in tax breaks,” which goes to the highest-income earners, Ms. Ghilarducci said.

    That simply results in transferring money from taxed savings accounts to untaxed accounts, she said.
    “If we implement automatic [individual retirement accounts] or if we expand the 401(k) system, all we’re doing is adding to this inefficiency,” Ms. Ghilarducci said.

    Rep. Robert Andrews, D-N.J., raised the issue of which investment advisers are allowed to offer workers investment advice.

    The Department of Labor is considering “loopholes” that would allow advisers to offer “conflicted investment advice if the advisers work for subsidiaries of financial services companies that sell the investments,” he said.

    With American workers facing $2 trillion in losses from retirement plans over the past year and Democrats expected to gain seats in the House and the Senate, actions being contemplated by the committee are an important harbinger of what could come out of Congress next year.
    http://www.investmentnews.com/apps/p.../REG/810079894
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  5. #5
    bruce333's Avatar
    bruce333 is offline HGF Forum Moderator
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    this
    Quote Originally Posted by js
    Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds,
    is very different from this

    Quote Originally Posted by hunter18372
    ... Federal Govt. taking over pension plans and 401 K's.
    hunter18372, you don't happen to work for WTVD do you?
    Bruce, Life Member: NRA, NCRPA, GRNC, GOA

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  6. #6
    kev74's Avatar
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    I call shenanigans on this.

    This article from 3 weeks ago states that one (1) member of congress questioned the benifit of using pre-tax dollars to fund 401K accounts and an economics professor at The New School for Social Research suggested that changes be made to Social Security. It doesn't say anything about the government seizing 401Ks or pensions.

    I'm not ready to panic over this yet.

  7. #7
    hunter18372 is offline Junior Member
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    http://www.sharedproperity.org/bp204.html

    Go to this site and doe the research. listen to the audios etc.

  8. #8
    bruce333's Avatar
    bruce333 is offline HGF Forum Moderator
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    not working
    Network Error (dns_unresolved_hostname)


    Your requested host "www.sharedproperity.org" could not be resolved by DNS.
    "doe" the research??
    Bruce, Life Member: NRA, NCRPA, GRNC, GOA

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    "I personally think we developed language because of our deep inner need to complain."--Jane Wagner
    "The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom."
    -Isaac Asimov

  9. #9
    falshman70's Avatar
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    I heard the economist that proposed this yesterday on Rush. The plan is for the government to take your 401K balance and credit you with an amount that you had in August. You would earn 3% + inflation on the money thereafter. you could invest 5% of pay annually and would get a $600 tax credit instead of exempting 401K investments from FIT as is done now. Your heirs would only get half if you die before them. This wouldn't be that bad a deal for someone my age, as I'd retire in 2 - 4 years and earning a stated return rather than having growth isn't that big a deal. But for younger workers this is awful. I'm afraid we're in for 4 years of proposals to take responsibility for all aspects of our lives away from us and vest it with the government.

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