Before we begin, lets look at the method that the government of Argentina chose to save their Social Security.
Argentine Senate Approves Nationalization of Pensions (Update2)
Nov. 20 2008 (Bloomberg) -- Argentina’s Senate approved President Cristina Fernandez de Kirchner’s plan to nationalize about $24 billion in private pensions.
Of the 65 senators present, 46 voted to back the bill, 18 voted against it and one abstained. The funds will be transferred to the state-run social security agency, known as Anses, which will be in charge of administrating them. The bill was approved by the lower house of Congress on Nov. 7.
“This is a proposal that will benefit the whole social security system,” said Cesar Gioja, a senator for the ruling Peronist party, during the 12-hour debate.
Opposition leaders said the planned takeover is a cash grab, and that the state-run social security agency can’t be trusted to manage the funds responsibly. Gerardo Morales, a senator from the Radical Civic Union, said nationalization paves the way for the government to use the funds to pay debt and increase public spending.
“Anses is not ready to manage these funds,” said Morales during the debate. “This is a very precarious bill.”
The proposal was modified by the lower house to add restrictions on how the pension money can be used. The bill requires the social security agency to invest the assets “profitably and safely,” and sets up a 13-member oversight board that will be named by the government. It also limits the amount that can be loaned to the government through bond purchases. Click here to read the rest.You see, Argentina nationalized individuals private pensions. Theft. Plain and simple.
Yesterday and today the Department of Labor had joint hearings on "lifetime income options for retirement plans". In other words, our government is looking at ways of stealing your retirement savings. Why? Because some dumb bastard who didn't think ahead and save for himself has to rely on Social Security. Which is broke and private retirement accounts have over $7 TRILLION just begging to be
The Department of Labor, along with members of Congress, want to sell this program as a way of providing financial security for people when they get older. Wait. Wasn't Social Security supposed to do that? Sorry, got sidetracked there. Anyway, what the government plans to do is take everyones retirement accounts and put it all in one big pot, add 3% interest, then dole out payments until you die.
Sounds pretty safe and secure right, but so did Social Security. Which is broke. Did I just mention Social Security is broke, again? I'm sorry, I'll try not to repeat it over and over.
As I was saying, the plan sounds safe and secure but in reality you're going to get screwed and I'll tell you why in just a second.
Social Security is broke. I just have to get that out of my system.
Ok, here goes. Without going into too much detail about what your retirement account could earn if a private company managed it, but if you look at interest rate averages for the past 20-30 years, you will notice that you could be missing out on alot of money. On top of that, look at the rate of inflation, and 3% will barely cover for it. Which would mean that the government would have to up the payments when they take the "cost of living" into account. Just like they do with Social Security. Which is broke. Damn, I did it again.
Let's continue, shall we? Another thing to look out for is the possibility that once you die, your investment can't be left for your family, unlike private accounts, but sorta like Social Security. Which is, ah I caught myself that time.
The main reasoning behind the governments push to nationalize everyone's private retirement fund is simple. When you retire, most companies will give you your retirement package that you had with them in one lump sum. Apparently, politicians and bureaucrat don't think that you are responsible enough or smart enough to make your savings last until you pass away so they want you to rely on the government to send a check every month. Just like Social Security. Which is broke.
Here's something to chew on. Retirement USA is a major player behind the scenes. Don't know who they are? Well, this is information from their website;
Retirement USA is 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 – that recognize that retirement income security is a major issue of concern for current and future retirees.
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is a voluntary federation of 57 national and international labor unions. The AFL-CIO union movement represents 11.5 million members, including 3 million members in Working America, its new community affiliate. We are teachers and taxi drivers, musicians and miners, firefighters and farm workers, bakers and bottlers, engineers and editors, pilots and public employees, doctors and nurses, painters and plumbers—and more.
Read the AFL-CIO's blog entry about the Re-Envisioning Retirement Security conference.
The Economic Policy Institute, a nonprofit Washington D.C. think tank, was created in 1986 to broaden the discussion about economic policy to include the interests of low- and middle-income workers. Today, with global competition expanding, wage inequality rising, and the methods and nature of work changing in fundamental ways, it is as crucial as ever that people who work for a living have a voice in the economic discourse. EPI was the first - and remains the premier - organization to focus on the economic condition of low- and middle-income Americans and their families.
The National Committee to Preserve Social Security and Medicare works to protect, preserve, promote, and ensure the financial security, health, and the well being of current and future generations of maturing Americans. NCPSSM acts in the best interests of its members through advocacy, education, services, grassroots efforts, and the leadership of the Board of Directors and professional staff. The efforts of the National Committee to Preserve Social Security and Medicare are directed toward developing better-informed citizens and voters.
Read the National Committee's blog entry about the launch of Retirement USA.
The Pension Rights Center is the nation's only consumer organization dedicated solely to protecting and promoting the retirement security of American workers, retirees and their families. For more than three decades PRC has acted as a consumer watchdog to preserve key protections; secured the adoption of a dozen federal laws and regulations; helped thousands of people obtain wrongfully denied pensions; and authored numerous publications to explain complex rules. PRC has an unparalleled reputation for credibility, hard work, and an untiring commitment to economic justice.
Read the Center's blog entry about the launch of Retirement USA.
The Service Employees International Union is the fastest-growing union in North America. Focused on uniting workers in three sectors to improve their lives and the services they provide, SEIU is: the largest healthcare union, with more than 1.1 million members in the field, including nurses, LPNs, doctors, lab technicians, nursing home workers, and home care workers; the largest property services union, with 225,000 members in the building cleaning and security industries, including janitors, security officers, superintendents, maintenance workers, window cleaners, and doormen and women; and the second largest public services union, with 850,000 local and state government workers, public school employees, bus drivers, and child care providers.
Read the SEIU's blog entry about the Re-Envisioning Retirement Security conference.
Read SEIU's blog entry about the launch of Retirement USA.Hey, wait a minute. Didn't the AFL-CIO president say that the US doesn't have a deficit?
Yep, he did. So I guess this kind of truthiness will be part of the new retirement benefit. Oh joy!
And another thing, hasn't SEIU had some PR problems, nightmares, in the past?
Ah well, I guess we should be used to lie's and being pushed around by now.
Hey, at least the government is willing to give you some of your retirement back, just as long as it doesn't go broke like Social Security did.
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