Theodore's World: Republicans Sound Alarm on Obama's Plan to Seize 401(k)s

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May 05, 2010

Republicans Sound Alarm on Obama's Plan to Seize 401(k)s

Human Events

The Obama Administration is making plans to take over the nation’s 401(k)s in order to bail out their union backers and their bankrupted pension plans.

In February, the White House released its “Annual Report on the Middle Class” containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through “retirement security” options.

The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement — which lets them off the hook for their collapsing retirement scheme. And, of course, the Obama administration is eager to accommodate their buddies.

Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February “Middle Class” report.

In conjunction with the report’s release, the Obama administration jointly issued through the Departments of Labor and Treasury a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options” in the form of a notice to the public of proposed issuance of rules and regulations. (pdf)


Republican Leader John Boehner released this statement today in response to this recent move by democrats:

Keep Bureaucrats’ Hands off Americans’ 401(k)s

House Republican Leader John Boehner (R-OH) and members of the House GOP Savings Solutions Group sent a letter to Labor Secretary Hilda Solis and Treasury Secretary Timothy Geithner warning the Obama Administration that the government should keep its hands off of the retirement savings of Americans, and should reject proposals that would dismantle or nationalize the private 401(k) system in favor of a government-run retirement security regime. Several Administration officials, including the Vice President, have voiced support for efforts to create so-called “Guaranteed Retirement Accounts” or impose new government mandates which would undermine 401(k) retirement savings plans and jeopardize employers’ willingness to continue offering them to their workers. Boehner issued the following statement:

“The American people are asking ‘where are the jobs?’ They aren’t asking for job-killing policies that jeopardize their retirement savings. Unfortunately, Washington Democrats are pursuing policies that make it more difficult to offer 401(k) savings plans to their workers, and some are even advocating replacing them with government-run accounts and ending 401(k)s altogether. That’s unacceptable and not the solution Americans need at a time when they are still rebuilding their retirement, college, and personal savings.
“Republicans are committed to offering better solutions, and the proposal we have offered – the Savings Recovery Act – will help restore Americans’ savings and ensure that Washington does not stand in the way of families’ ability to save more. It’s time for Democrats to stop advocating policies that will destroy Americans’ savings and work with Republicans on better solutions to help rebuild them.”

Several GOP House members signed on to a letter delivered to labor Secretary Hilda L. Solis and Treasury Secretary Timothy Geithner expressing their concerns today.

House Republican Leader John Boehner (R-OH)
Rep. John Kline (R-MN)
Rep. Dave Camp (R-MI)
Rep. Sam Johnson (R-TX)
Rep. Dean Heller (R-NV)
Rep. Brett Guthrie (R-KY)
Rep. Michele Bachmann (R-MN)
Rep. Pat Tiberi (R-OH)
Rep. Bob Latta (R-OH)
Rep. Erik Paulsen (R-MN)
Rep. Lynn Jenkins (R-KS)
Rep. Ed Royce (R-CA)
Rep. Buck McKeon (R-CA)


Wild Thing's comment........

I don't have a 401 K, but this should tick off every American to see this GREED from Obama.

Wanna bet Obama voters scream the loudest when this takes place? or are they just swiping the 401k of republicans?

We are a free people, and have been pushed, prodded and abused. This is tyranny.

Obama has devastated everything he's touched (by design). We are living in tyranny now and the only thing that hasn't happened is the brutalization of the citizenry (which is coming soon imo)

Obama then enemy Foreign and Domestic, Obama has devastated everything he's touched (by design )We are living in tyranny delivered to us by Obama.

Thank God for John Boehner leading the way on this and his letter. They , WE, need for ALL the Republicans in power to sign it.

Posted by Wild Thing at May 5, 2010 06:49 AM


There is no end to what this animal and his administration will do. I would rather pull the money out and pay the penalty then to turn the 401k over to the governemnt. This is tyrannical. Do you think little timmy cares about what the Republicans say or think. Keep it up Barry! Power to the people! Remember that phrase?

Posted by: cb at May 5, 2010 08:41 AM

We've already said that if this even begins to get voted on, we're taking our entire 401K out. We'll pay the penality however, that's better then Obama and his greedy thugs taking it all. It's taken nearly 18 years of contributions and patience, no socialist is gonna take it away in a day.

You know, I said to my other half yesterday, I wouldn't put it past Obama to try to sell bonds like they did during WWII to try to pay off some of this deficit. He said why should they ask for bonds when its obvious they are just going to take your retirement (Social Security, 401(k) and IRAs) instead.

Posted by: Steele at May 5, 2010 08:56 AM

I'm not a lawyer, but to me this looks like a clear violation of the constitution, siezing personal property without just compensation. That compensation is the interest that my account will not see because the greedy bastard obama wants to suck off the unions. who bought the white house for him.

If this passes nothing you own, have or possess will be safe from government siezure.

I usually watch Glenn Beck at 5 on Fox and have been turning him off after about 20 minutes, I do like him but his message is such a downer. But he is right. These commie bastards are stealing our country right out from underneath us.

"Neither the wisest Constitution, nor the wisest laws will secure the Liberty and happiness of a people whose leaders are universally corrupt"--Samuel Adams.

Posted by: Mark at May 5, 2010 12:27 PM

This has been on a low simmer for a few months now. They're going to have to come up with money somewhere and there aren't enough rich people to cover their spending. If Boehner is commenting on it, they must be turning up the heat.
Boehner gave a great speech on the house floor before the healthcare vote. I have it on the dvr and watched it again last week. It's a shame no one on the other side of the aisle was listening.

Posted by: Jim at May 5, 2010 07:54 PM

CB, ditto that, and they can't even take one day and not to something or try against our country. "There is no end to what this animal and his administration will do"

Posted by: Wild Thing at May 6, 2010 01:49 AM

Steele, wow and you said that yesterday. Thanks for sharing about that. I hope and pray they don't do it, but when I saw the letter from Boehner and how he got on it right away, it must be intense from Obama wanting to do it for sure. I pray so much they won't.

Posted by: Wild Thing at May 6, 2010 01:51 AM

Mark, ..."If this passes nothing you own, have or possess will be safe from government siezure."....See I had not thoguht of that, but your right, that would just open the door to more and more taking by him.

I agree with you about Beck, he is good, but sometimes physically I just can't handle more horrible news. I can feel it so strongly one thing after the other and wanting so badly to fix it and make things right.

Posted by: Wild Thing at May 6, 2010 01:57 AM

Jim, well said, I agree. To see Boehner get on this is alarming too, he usually takes awhile and he jumped on this fast.

Jim I agree too about Boehners speech it was awesome. Well worth saving and listening to again too. Thanks for sharing about that.

Posted by: Wild Thing at May 6, 2010 01:59 AM