Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 14 Share on Twitter 1 Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 8/3/18

The Roadblock To Common Sense Pension Reform

By       (Page 1 of 1 pages) (View How Many People Read This)   No comments
Author 47089
Follow Me on Twitter     Message Robert Reich
Become a Fan
  (129 fans)

From Robert Reich Blog

Employee Benefits
Employee Benefits
(Image by hraps.humboldt.edu)
  Details   DMCA

55 million Americans -- about half of the entire private-sector workforce -- have no employer-sponsored retirement plan at all. Many work for small businesses in the low-wage service and hospitality sectors. If they don't save money independently, they will have nothing when they stop working.

This is very different from four decades ago when most workers retired with a company pension.

The good news is that several states -- including Oregon, California, Illinois, Connecticut, and Maryland -- now let such workers put money away in state-sponsored retirement plans that allow them to withdraw their accumulated savings, tax free, when they hit retirement.

The bad news is that the investment industry is aggressively seeking to block these plans, fearing the competition.

That's because the fees charged by most state retirement plans are capped at around 1 percent -- much lower than the fees of similar plans operated by banks and investment companies. And state fees are expected to drop even lower as more workers enroll.

If each of America's 40 million retirees saved on average $50,000 in the state program, they'd have an additional $20 billion in the first year. That's $20 billion more in the pockets of retirees, not financial institutions.

Right now, the industry's efforts appear to be winning.

Republicans in Congress -- backed by the U.S. Chamber of Commerce and a coalition of Wall Street investment firms -- are seeking to block states from implementing these plans at all.

Investment and insurance companies are also spending like mad on election campaigns of friendly state legislators and threatening lawsuits. Which is why many proposed state-run retirement plans are languishing in statehouses around the country.

Folks, the anger and frustration that led to Trump continues to simmer. If we allow the moneyed interests to block common-sense reforms like this, in future years, America could face an even worse fate than Trump.

When you vote in November, vote for legislators who want to allow workers to save for retirement and against legislators who are shills for the financial sector.

 

Must Read 1   Supported 1   Valuable 1  
Rate It | View Ratings

Robert Reich Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Trump Cornered

The Republican's Big Lies About Jobs (And Why Obama Must Repudiate Them)

Paul Ryan Still Doesn't Get It

What Mitt Romney Really Represents

What to Do About Disloyal Corporations

The Gas Wars

To View Comments or Join the Conversation: