France to go after private pensions

[boedicca]

These are not "private" pension funds. They are also much more generous then SSI. France has a much earlier retirement age then the United States.

And they had huge riots because it is fast becoming insolvent.

 

[Sallow]

These are not "private" pension funds. They are also much more generous then SSI. France has a much earlier retirement age then the United States.

And they had huge riots because it is fast becoming insolvent.

Holy gosh.

The second side of the equation is Europe has been fast ramping up their military capabilities and upgrading their gear. In fact to keep down costs (which is difficult) they've tried joint operations.

Part and parcel with the Greek meltdown is they borrowed that money to upgrade their faultering military.

Costa Rica..with no military..and some pretty generous social benefits runs no such deficits.

 

[boedicca]

These are not "private" pension funds. They are also much more generous then SSI. France has a much earlier retirement age then the United States.

And they had huge riots because it is fast becoming insolvent.

Holy gosh.

The second side of the equation is Europe has been fast ramping up their military capabilities and upgrading their gear. In fact to keep down costs (which is difficult) they've tried joint operations.

Part and parcel with the Greek meltdown is they borrowed that money to upgrade their faultering military.

Costa Rica..with no military..and some pretty generous social benefits runs no such deficits.

Wow. What a bunch of revisionist history nonsense.

Greece and France are both examples of countries with high taxes, high structural unemployment, and incredibly low retirement rates. Add these all up, and insolvency is INEVITABLE.

 

[CrusaderFrank]

Obviously, the world would be a better place if everyone except the Soviets and ChiComs disarmed

 

[boedicca]

Costa Rica..with no military..and some pretty generous social benefits runs no such deficits.

Costa Rica has favorable demographics: a birth rate of 2.13 which is right around the replacement rate.

Greece's rate is 1.37; and France is 1.98 (due to Muslim immigration).

A country with a birth rate below replacement is a shrinking and aging one, with less workers to support low retirement ages with high benefits.

 

[Sallow]

And they had huge riots because it is fast becoming insolvent.

Holy gosh.

The second side of the equation is Europe has been fast ramping up their military capabilities and upgrading their gear. In fact to keep down costs (which is difficult) they've tried joint operations.

Part and parcel with the Greek meltdown is they borrowed that money to upgrade their faultering military.

Costa Rica..with no military..and some pretty generous social benefits runs no such deficits.

Wow. What a bunch of revisionist history nonsense.

Greece and France are both examples of countries with high taxes, high structural unemployment, and incredibly low retirement rates. Add these all up, and insolvency is INEVITABLE.

Look if you don't want have a serious discussion..just say so.

Greece? High Taxes? Greece is pretty much an example of "hands-off" government with a socialistic health care system. You might have countered here with something like they didn't control their own currency..or..I don't know..

But that's what the loans were taken out for..to finance the Military.

And up until very recently..France has been doing pretty well. But what's changed? Well the international financial meltdown for one? And France wanted to upgrade it's aging nuclear missile facilities.

But woosh..it's all because of the "evil socialism" practiced in those countries.

 

[Toro]

And why should we care?

Because some Democrats WANT TO DO IT HERE.

Actually, the only person I know of who has actually tried it is Republican governator Arnie. They may have tried it in a few other states as well, such as New Jersey and Illinois, but I can't remember.

FTR, this is brutal, terrible policy. The pension fund shouldn't be a piggy bank for the government.

It can't be done in SS BTW because SS debts cannot be sold to raise cash.

 

[boedicca]

Holy gosh.

The second side of the equation is Europe has been fast ramping up their military capabilities and upgrading their gear. In fact to keep down costs (which is difficult) they've tried joint operations.

Part and parcel with the Greek meltdown is they borrowed that money to upgrade their faultering military.

Costa Rica..with no military..and some pretty generous social benefits runs no such deficits.

Wow. What a bunch of revisionist history nonsense.

Greece and France are both examples of countries with high taxes, high structural unemployment, and incredibly low retirement rates. Add these all up, and insolvency is INEVITABLE.

Look if you don't want have a serious discussion..just say so.

Greece? High Taxes? Greece is pretty much an example of "hands-off" government with a socialistic health care system. You might have countered here with something like they didn't control their own currency..or..I don't know..

But that's what the loans were taken out for..to finance the Military.

And up until very recently..France has been doing pretty well. But what's changed? Well the international financial meltdown for one? And France wanted to upgrade it's aging nuclear missile facilities.

And France is pushing for EU budget freezes through 2020 - quite telling.

But woosh..it's all because of the "evil socialism" practiced in those countries.

Gee, you're dumb.

Tax rates in Greece:

Income Tax Rate
- First 10,500 Exempt
- Next 18,000 27%
- Next 45,000 37%
- Exceeding 75,000 40%

Corporate Tax Rate - 24%

Sales Tax / VAT Rate - 19%

Those are high tax rates, for which tax avoidance is rampant.

 

[Toro]

Then you should start paying attention. The concept is called a "Guaranteed Retirement Account" to be managed by the government - to replace 401Ks.

How Guaranteed Retirement Accounts work

Structure. Guaranteed Retirement Accounts are like universal 401(k) plans except that the government, as befits a large and enduring institution, will invest and manage the pooled savings.

Participation. Participation in the program is mandatory except for workers participating in equivalent or better employer defined-benefit plans where contributions are at least 5% of earnings and benefits take the form of life annuities.

Contributions. Contributions equal to 5% of earnings are deducted along with payroll taxes and credited to individual accounts administered by the Social Security Administration. The cost of contributions is split equally between employer and employee. Mandatory contributions are deducted only on earnings up to the Social Security earnings cap,2 and workers and employers have the option of making additional contributions with post-tax dollars. The contributions of husbands and wives are combined and divided equally between their individual accounts.

Refundable tax credit. Employee contributions are offset through a $600 refundable tax credit, which takes the place of tax breaks for 401(k)s and similar individual accounts and is indexed to wage inflation. Eligibility for the tax credit is extended to part-time workers, caregivers of children under age six, and those collecting unemployment benefits. If an individual’s annual contributions amount to less than $600, some or all of the tax credit is deposited directly into the account in order to ensure a minimum annual deposit of $600 for all participants.

Guaranteed Retirement Accounts: Toward retirement income security | Agenda for Shared Prosperity

Depends what the structure of this plan looked like. If it were run like a real pension plan, then it is worth considering, at least as an option. Most people do a poor job investing for themselves. If all the government is going to do is replace it with a SS-like system, its a horrible idea because SS is a poor system. It's also a bad idea if the government forces people to convert their 401ks into this system. It would be best if it were optional and professionally-managed.