Unions Want to Take Over Your 401(k)

[Craftsman]

One of the nation's largest labor unions, the Service Employees International Union (SEIU), is promoting a plan that will centralize all retirement plans for American workers, including private 401(k) plans, under one new "retirement system" for the United States.

In effect, government pensions for everyone, not unlike the European system and regardless of personal choice.

The SEIU, which was integral to the election of Barack Obama as president, is working with the left-leaning Economic Policy Institute (EPI), and the National Committee to Preserve Social Security and Medicare, on SEIU's plan, called "the Retirement USA Initiative."

Claiming that the retirement system in place now has "failed most Americans," EPI vice president Ross Eisenbrey, told a labor union publication that "account balances have fallen by a third since late 2007, leaving many older workers unable to retire just as our economy is shedding millions of jobs.”

http://moneynews.com/StreetTalk/unions-401k-pensions/2009/03/17/id/328862

[whistler162]

1. Please NO!!!!

Given that a few of the local unions around here where heavily invested with Madoff.... GAWD NO!!!

[Davis_X_Machina]

2. A single transportable pension account....

....not tied to any one employer, in addition to OASDI, can't help but be a good thing, for many of the reasons that breaking the connection between employment and medical insurance is important. Id' rather have a full-faith-and-credit entity holding the kitty, though.

[Craftsman]

5. What if you do not trust that full faith and credit entity?

I don't. I at the first sign of this will get my money out and move it out of the country.

[high density]

3. I'd rather be able to just take my 401k to a company of my choice

Being locked into a company and funds that my employer has mandated, likely selected by an HR department that knows nothing about investing, is not an exciting idea for storing craploads of money.

[proud2BlibKansan]

4. I'd trust my union over my employer to handle my retirement

[hack89]

15. Jimmy Hoffa was a great money manager

:eyes:

[proud2BlibKansan]

16. He's not running my union

[hack89]

18. The point being that money is the most corrupting substance on earth

Union pension funds were the honey that attracted organized crime to the unions in the 60's - it has taken a long time for the Unions to regain a reputation for honesty and integrity.

[yodoobo]

21. actually he was a great money manager

[hack89]

28. He managed himself into prison for misuse of pension funds. nt

[yodoobo]

35. That was a setup by his enemies

The pension funds earned very well under his leadership.

[hack89]

40. Of course

I keep forgetting that he was a political innocent who was so intent on improving the lot of the working man that he was completely unaware of the takeover of the Teamsters by organized crime until it was too late. :eyes:

[Better Believe It]

33. I don't trust SEIU President Andrew Stern considering his "sweetheart" contracts with employers and

the wave of corruption sweeping his administration.

[tabatha]

6. As long as it is not tied to the stock market.

[harkadog]

7. No union bureaucrat will get his fat hands on a dime of my money.

[Craftsman]

8. Amen

[Omaha Steve]

10. Your congressman doesn't agree with that statement

This fund is not to be controlled by unions. Remember this is a conservative publication that backs banks. Some of us just can't tell the difference between the left or the right in print.

[proud2BlibKansan]

25. Unions have bureaucrats?

Who knew. :rofl:

[Johnyawl]

9. yeah, right. Sounds like more fear mongering

The SEIU can't even get the Dems to consider card check, how are they gonna get them to consider this?

[grantcart]

12. exactly look at the boogeyman in #11 below

[grantcart]

11. Why do you go to a right wing source when 3 minutes at google will

take you to the original source and you can report on it truthfully.

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.

Seems pretty responsible to me.

If your quoting a source that is trying to scare you about the Unions maybe you should check the source.

[Davis_X_Machina]

13. Some people...

...have seen On the Waterfront too many times.

[Canuckistanian]

27. Hahaha

Exactly.

[BrklynLiberal]

14. Thanks

[proud2BlibKansan]

17. Thank you

This OP struck me as union bashing.

[alcibiades_mystery]

30. The OP is know-nothing shit

Pure and simple.

[mdmc]

22. solidarity

[WorseBeforeBetter]

29. ...

[yodoobo]

19. Better unions than Wallstreet bankers

I would be thrilled to sign over my small 401k for a guaranteed pension.

Its only a matter of time before the bankers take the rest of what they took in 2008.

At least a union is there to protect you. can't the same of Bank Of America's CEO.

[LWolf]

20. No, they don't.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=367x25648

[spinbaby]

23. It's called social security

We don't need a new system, we have one.

[mia]

24. I've been paying union dues for 15 years

I joined because I believe in unions, but from what I've seen with any "extras" they offer it's always a rip-off. I've looked closely into their credit cards, life insurance, long term care insurance, and auto insurance and it's always been a better deal financially with anything other than what the union offers.
A few years ago when I was working late three of my car windows were shot out while my car was parked in the school parking lot(I used to work in a rough neighborhood). The school said I should call the union about insurance coverage. The union said that it wasn't covered because I didn't buy "Liberty Mutual" auto insurance through them.

It is my opinion that the unions take a cut of everything they offer to employees and they are sub-standard products at that. Now I view my union dues as "protection money".

[proud2BlibKansan]

26. My union negotiated a policy for us that pays damages

when our property is damaged or stolen at school. The school district pays for the policy.

It isn't the union's responsibility to pay for this. The school is district property, not union property. It's ridiculous to expect a union to cover this.

[amborin]

31. that's not my fave union; the head is autocratic & has been called out for that, by other union lead

leaders

the essence of democracy is factionalism, and SEIU wanted to exercise control over local leadership

eta: plus, Stern's idea of expanding membership to the detriment of core union values, raises red flags

[Better Believe It]

34. Point well taken. I'm familiar with the scandals hammering the SEIU's Andrew Stern administration

[Mojeoux]

32. Glen Beck is in a Union

There are no Unions in China.

[Naturalist111]

36. Why did you type Unions

when it is one Union? Do you work for the media?

[Touchdown]

37. Load of shit. A seriously distorted article from a corporate whore source.

The facts of the story are in a post half way down from your flamebait.

[Codeine]

38. Wow. You sure you're in the right place? nt

[Odin2005]

39. right-wing anti-union garbage.

[Omaha Steve]

41. BTW

No union member working for Enron lost a dime in their pensions. Those not in a union at Enron, didn't do so well.

[xchrom]

42. Info from an anti union pro bank rag? Nt