Europe starts confiscating private pension funds

[IScreamSundays]

Source: Washington Examiner

The U.S. isn't the only place that's facing a major pension fund crisis. The Christian Science Monitor has this alarming report:

People’s retirement savings are a convenient source of revenue for governments that don’t want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds.

The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings.



Read more at the Washington Examiner: http://washingtonexaminer.com/blogs/beltway-confidential/2011/01/europe-starts-confiscating-private-pension-funds#ixzz1A1TdBO45

Read more: http://washingtonexaminer.com/blogs/beltway-confidential/2011/01/europe-starts-confiscating-private-pension-funds#ixzz1A0ycw8EB

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European nations begin seizing private pensions

Hungary, Poland, and three other nations take over citizens' pension money to make up government budget shortfalls.

People’s retirement savings are a convenient source of revenue for governments that don’t want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds.

http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

[SpiralHawk]

1. "All your pension funds are belong to us." - The Bastard People with Republiconitis

[FreakinDJ]

4. Probably better then Wall St Crooks taking your pension

Oh wait...

they already did

[Mark Maker]

6. For sure, at least you can count on the government to

spend it wisely and for the proper things.

[MichiganVote]

2. Why bother working? The rich end up with it all. Game, set, match.

[shanti]

3. what is the other option?

oh wait....

[FiveGoodMen]

12. Kill the rich and take back what they've stolen.

[dkf]

5. Isn't this just a 100% tax?

Why is this any different from tax proposals to tax 96% of income?

[Odin2005]

7. I am speechless!

:grr:

[happyslug]

8. I would like a better source for this than a blog posted by the CSM but NOT run by the CSM

The post sited is a Blog offered by the Christian Science Monitor (CSM) but NOT run by the CSM.

The CSM Blog then cites to a Wall Street Journal blog:
http://blogs.wsj.com/new-europe/2010/11/24/hungary-forces-private-pension-fund-members-back-to-state-scheme/
That goes into detail that what Hungary is doing is forcing people to decide to retain their private pension and rely on it for the rest of their lives OR turn it over to the state and return to the State Pension program. The private Pension plan is funded by investments, if the investments do not go up, the pension goes down. The State Pension is a pay as you go pension, no matter how long you live, you get the pension even if you get more money then you invested into the pension.

Sounds more like Hungary is telling its Senior Citizens to opt for the State Pension by turning in private pensions. The State of Hungary can use that private money as it sees fit during this difficult time period, but promises to make it up in the future when times are better.

Another blog is cited for Bulgaria, and that again it is a take over of private pensions to bail out the State Pension plan with a promise of continued payments but this time by the State system:
http://bulgaria.world-countries.net/archives/50753

The Report on France is from another blog:
http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/15334344-1.html

Reading these blogs, you quickly see what these countries are doing. What they call Second tier benefits offered by the Government (Through sometimes called "private pension" to differentiate them from Social Security in each country) are being cashed in and the assets of those second tier benefits are bring used to bail out their Social Security programs (which unlike the US Social Security had never been fully funded) so that such Social Security Program can continue as a pay as you go system given the decline in revenue do to the recession.

These countries are trying to keep their economy going without raising taxes as revenue continue to drop. That is difficult but it does not mean the disaster the above cite says this is.

[tama]

9. It's just money

and money is just a bankster scam.

[katty]

10. Corporate Welfare creating private pauperism

[bbinacan]

11. If anyone, and I mean anyone comes

after MY personal savings, they'd better have one big fucking gun. :mad:

[DCKit]

13. You may as well expend your energy railing against the unreccers on theis thread...

Fight now.

[formercia]

15. You will never see it happen

one day, it will just be gone.

[Selatius]

14. They are simply doing what the Republicans have been trying for years with Social Security.

If they can, they will destroy Social Security and use the revenue to enrich themselves and their close friends, while the rest of Rome burns to the ground.

No democracy can long endure with an ignorant citizenry that can't or won't fight to inform themselves.

[skoalyman]

16. This won't end well

:nuke: :scared:

[MrSheep]

17. Pension Fund theft not an origional idea

Sorry gang. It was the Rev Jackson who proposed raiding
private pension funds to pay for government programs in 1992.

All of Jackson's critics ask, How would you pay for it?  The
campaign has drawn up impressive budgets, and Jackson is
offering ingenious new ways of liberating capital for public
use, such as the investment of pension funds in federally
approved projects. But the budget crunch that has deadlocked
social development in America for a generation cannot be
approached by limiting the range of possibilities to existing
categories of revenue. 

[purrFect]

18. Some lock box, eh?

They are being advised to take a page out of our play book.