Here's a disturbing story: now that China is growing reluctant to lend America money, the federal government wants to "borrow" your retirement savings by force.
The Department of Labor and the Department of the Treasury (the "Agencies") are currently reviewing the rules under the Employee Retirement Income Security Act (ERISA) and the plan qualification rules under the Internal Revenue Code (Code) to determine whether, and, if so, how, the Agencies could or should enhance, by regulation or otherwise, the retirement security of participants in employer-sponsored retirement plans and in individual retirement arrangements (IRAs) by facilitating access to, and use of, lifetime income or other arrangements designed to provide a lifetime stream of income after retirement. The purpose of this request for information is to solicit views, suggestions and comments from plan participants, employers and other plan sponsors, plan service providers, and members of the financial community, as well as the general public, on this important issue.
I.e., the government is considering nationalizing your IRA, Roth, and 401(k) and replacing the money there with some new form of Treasury bill that will pay a "guaranteed" "lifetime stream of income".
Homework questions:
1. Isn't this what Social Security is already supposed to be doing?
2. China doesn't think t-bills are a good investment anymore... do you?
