Obama ally targets 401(k) dollars
For the record, the SEIU is headed by Andy Stern, who is the most regular visitor to the White House. The SEIU contributed millions to the Obama election campaign and Obama has openly admitted that he consults with his old pal Andy prior to making any economic decisions. This just reeks of back-scratching and it’s the American people who will be paying for these socialist programs going forward. No surprise then that the SEIU is involved in the next money-grabbing scheme – seeing as they themselves owe the banks millions and their member pension plans are bankrupt….
A key labor union ally of the Obama administration has mounted an effort to create government-mandated worker retirement accounts as an entitlement program, with the possibility that a portion of all private retirement funds could be forced into U.S. Treasury debt.
Branding the program “Retirement USA,” the Service Employee International Union, or SEIU, has joined with the AFL-CIO, the Economic Policy Institute, a Washington-based economic left-leaning think tank that receives substantial labor funding and two other left-leaning interest groups, the Pension Rights Center and the National Committee to Preserve Social Security.
Retirement USA promotes the concept that all workers in the U.S. have a right to a government account that would fund a secure retirement in addition to Social Security and private workplace programs such as the 401(k).
“Our goal is to involve all workers and all employees in a government-mandated retirement program, with the government putting up the difference for lower-paid employees,” Nancy Hwa, a spokewoman for the participating Pension Rights Center, told WND.
Retirement USA would require by law employers and employees to contribute to a retirement account for every employee and demand that a portion of that contribution go into a federal-government-created annuity that would be funded by purchasing Treasury debt.
“Retirement USA is basically an effort that amounts to nationalizing 401(k)s and IRAs,” David John, a senior research fellow at the Heritage Foundation told WND.
Under the guise of making workplace retirement savings accounts available to all Americans and insuring that existing retirement savings accounts pay lifetime income, the SEIU-led Retirement USA effort is quietly exploring strategies that would create “Universal IRAs” or “Guaranteed Retirement Accounts” for all workers.
Moreover, with the Obama administration needing to raise nearly $1.5 trillion just to cover this year’s anticipated federal budget deficit, and with the Federal Reserve discontinuing efforts to purchase U.S. Treasury debt, the Obama administration is looking at 401(k) and IRA accounts as trillions of dollars that could be forced into Treasury bonds to finance the federal budget deficits.