Private pensions have been, or are in the process of being seized by Hungary, Poland, Ireland, France and Bulgaria. Each government plan is different, some more extreme than others, but all will be used to shore up government revenues. Obama and his Treasury have their eye on American 401ks and IRAs. Think about it. It’s not so shocking.
[Hungary] 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.
[France] In November, the French parliament decided to earmark €33bn from the national reserve pension fund FRR to reduce the short-term pension scheme deficit. In this way, the retirement savings intended for the years 2020-2040 will be used earlier, that is in the years 2011-2024, and the government will spend the saved up resources on other purposes.
Bulgaria, Ireland and Poland have their own plans.
In March, Washington’s Blog wrote about a “rumor” that the Obama administration might seize funds from U.S. 401K and IRA accounts -in the name of security for retirees, of course. The blog quotes Karl Denninger warning “that a government “option” for investing retirement funds in treasuries could soon become mandatory.
Then Newt Gingrich is quoted:
In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.
They will tell you that you are “investing” your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds.
From the NewAmerican in May 2010:
In Chapter 3 of the Annual Report on the Middle Class released in February by Vice President Biden and the White House Task Force on the Middle Class, the Obama administration calls for enhancing the “retirement options” for the middle class by imposing “new regulations to improve the transparency and adequacy of 401(k) retirement savings.”
The plan, as sketched in the 43-page document, calls for the creation of something called “Guaranteed Retirement Accounts” (GRAs). Biden slyly shifts the onus for the idea through weasel words typical of the federal government: “Some have suggested the creation of Guaranteed Retirement Accounts (GRAs), which would give workers a simple way to invest a portion of their retirement savings in an account that was free of inflation and market risk, and in some versions under discussion, would guarantee a specified real return above the rate of inflation.”
In October, The Conservative Mom wrote about meetings held of the Senate Health, Education, Labor and Pensions Committee on retirement savings and security. Take a look at the interesting info she has gathered.