Tuesday, March 19, 2013

'Pension reform,' '401k': Run when you hear those words

Florida first responders speak out against 
'Bye-bye retirement security' is what the words 'pension reform' and '401k' really mean.

American workers can't save enough on their own to retire. That includes people with 401k plans. Today, for example, the Employee Benefit Research Institute reported 60 percent of workers and their spouses have less than $25,000 in savings and investments. Half of those have less than $1,000. Those without a pension -- and that's most of them -- have a lot to worry about.

In Florida, the state that pensions made possible, lawmakers are trying to take away public service employees' pensions. We assume it's because they want to destroy business activity in the state.

Florida’s Retirement System is one of the strongest in the world. It would cost millions to change the system to a 401k. It will hurt corrections officers, firefighters, teachers and police officers.

The state AFL-CIO is urging Floridians to write their local newspaper to oppose the threat to retirement security for millions:
...tell your community about the real  retirement security threat to Florida’s Firefighters, teachers, police officers, nurses and state employees face. 
Retirement plans for state and local government workers affect millions of Floridians and boost the state economy.  These plans directly impact about 1.2 million current and former public employees in Florida and millions of their dependents and other family members.  In addition, tens of thousands of Florida’s businesses benefit each day when retirees spend their retirement checks on goods and services in every community in Florida. These vital benefits are provided through the Florida Retirement System and almost 500 local government retirement plans.
To send a letter, click here.

Btw, EBRI also reported 28 percent of respondents say they have no confidence at all that they'll afford a comfortable retirement. That's the highest number in 23 years.

We understand why.