Cal Wachdog | Pension deniers attempt to shame reform advocates

1 Response

  1. Jon Jenson says:

    It was quite alarming to read the proposal of the Taxpayer United of America ”to move public employees from a defined benefit plan … to a defined contribution plan, known as a 401(k) plan.”

    The Wisconsin Retirement System, aka the state pension plan – is a smashing success and a role model for all pension plans nationwide. It is the one invention that can promise a better life for hundreds of thousands of Wisconsin citizens.

    In contrast, 401(k) plans are a Wall Street skim operation. The majority of 401(k) plans are distributed amongst millions of small businesses, which means there is no economy of scale. In addition, most individuals do not have the financial savvy to avoid the inherent investment risks. As a result, individual 401(k) plans buy stocks and bonds at retail prices and their 401(k) balances at retirement are woefully small. In contrast, Pension Plans pool large amounts of money – which enables them to buy stocks and bonds at wholesale prices and mitigate investment risk with highly skilled financial specialists.

    Many pension plans were mismanaged which is why they became a burden on private and public employers. The solution is to modify those pension plans and copy the state of Wisconsin Retirement System (WRS). Bringing the WRS success to more Americans can be achieved through everyone’s representative trade organization. For example, for food workers, the National Restaurant Association has over 12 million members. The American Truckers Association has 37,000 members. That provides an economy of scale. The Newspaper Association of American could be a viable entity to organize a pension plan for you.

    Tragically, for most Americans, a 401(k) plan will never give them the retirement security that is provided by the Wisconsin Retirement System.

    I hope you can stop being gullible to pro Wall Street propaganda.

    NOTE: There is no secrecy to the Wisconsin Retirement System. A simple way to calculate the approximate annuity of everyone who participates in the Wisconsin Retirement System (WRS):
    “Average final salary” x number of years in the WRS x .0162 = approximate annuity at retirement.

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