Stop Republican Plans to Privatize Social Security

·         The Republican plan to privatize Social Security would undermine workers’ retirement security by cutting Social Security benefits for the middle class and adding trillions to the national debt. This could hurt the nearly 4,463,834 Californians receiving Social Security benefits.

·         Democrats will ensure a dignified retirement by stopping the privatization of Social Security, expanding retirement savings incentives and enact real pension reform to protect employees financial security from CEO mismanagement.

Expand and Enhance Savings Opportunities

·         AmeriSave Match: Help middle and working-class families achieve retirement security by matching dollar-for-dollar the first $1,000 contributed to an IRA, 401(k), or similar plan.

·         AmeriSave Financial Counseling:  Empower AmeriSavers with information on retirement saving options by providing a tax credit to employers who encourage access to independent, certified financial counselors for employees who are eligible for the new AmeriSave Match.

·         Spur Savings for Small Business Employees:  Help small businesses offer 401(k), IRA, and other similar plans to their employees by providing them with a tax credit to help cover the administrative costs of offering employees the opportunity to save.

·         Automatic 401(k) Participation:  Dramatically increase the number of people investing in 401(k) accounts by encouraging employers to automatically enroll eligible employees into these types of retirement plans unless the employee chooses not to participate. Also, lower-income working families would no longer be disadvantaged by saving for retirement.
Faster 401(k) Vesting:  Increase 401(k) benefits by triggering the employer-match for 401(k) accounts sooner.

·         Tax-Refund IRA: Make it easier for all Americans to save by allowing them to directly deposit part of their tax refund into an IRA or other retirement savings plan.

·         Increased Options for Retirement Income:  Encourage employers to offer their employees the option to convert their retirement plan into an annuity when they retire. Employers would receive a tax credit to help offset their administrative costs. The annuity would guarantee that retirees receive a specified amount of monthly income for the rest of their lives.

Protect Pensions

·         Democrats will reform bankruptcy and pension laws to prevent companies from unfairly dumping pension plans and will make certain that employees receive the benefits they have been promised after a lifetime of hard work.

·         Stop Unfair Dumping of Pensions: Remove incentives for corporations to use the bankruptcy process to dump their pension plans when there are sufficient assets to sustain these plans.  Require companies to consider workable alternatives to the termination of pension plans and give employees and retirees a stronger voice in the process.  These safeguards will also protect viable companies from the risk of liquidation and the loss of jobs.

·         Greater Transparency:  Give employees and investors accurate and timely financial information on significantly under-funded pension plans by requiring companies to release this information. 

·         Fairness: Treat corporate CEOs and employees fairly under pension and tax laws; if employee benefits are cut, executives should face similar restrictions.

·         Equity for Older Workers: Protect longtime employees when a company moves from a traditional pension to a cash balance plan by allowing employees to choose the plan that works best for their retirement needs.