There is a dilemma I face when dealing with those like Republican Illinois House Representative Tom Morrison and his pension proposal.
Morrison is calling his idea to shift our defined benefit system to a defined contribution 401k plan a “sustainable pension plan.”
Sustainable for Wall Street for sure.
For us? Not so much.
The dilemma part comes in because Morrison’s idea doesn’t have legs at the moment. Republicans like Morrison are barely holding on to their seats in both chambers of the Illinois General Assembly.
The current assault on our pensions is coming from the Democrats who are attempting to cut COLAs, limit access to health care and raise the age for benefits.
Morrison and his wacko wing-nut pals serve more as a diversion than a threat. At least for the moment.
Morrison makes it easier for Democrats to point and say, “It’s Morrison or us. See. We don’t look so bad.”
And some in the union leadership even buy into this nonsense.
But for those who are fooled into thinking that putting our pension money into a defined contribution 401k is good for anyone but Wall Street fund managers, there is this from Wall Street On Parade:
If you work for 50 years and receive the typical long-term return of 7 percent on your 401(k) plan and your fees are 2 percent, almost two-thirds of your account will go to Wall Street. This was the bombshell dropped by Frontline’s Martin Smith in this Tuesday evening’s PBS program, The Retirement Gamble.
This is not so much a gambleas a certainty: under a 2 percent 401(k) fee structure, almost two-thirds of your working life will go toward paying obscene compensation to Wall Street; a little over one-third will benefit your family – and that’s before paying taxes on withdrawals to Uncle Sam.
Word is that Madigan may try and call a vote on the Nekritz/Biss Nuclear Pension bomb, HB 43113411 tomorrow.
Worry about Morrison and his bullshit DC 401k pension plan some other day.
Call your legislator to vote no on HB4311 3411. Today. 888-412-6570.
Fred Klonsky 
Fred,
If you are paying 2% fee you are being ripped off, even as an individual account. With economy of scale of a 401(K) plan the size of the union account the fees should be substantially less.By the way, do you think that the current $ managers for the union plans are managing all of that $ for free. Why don’t you ask what you are paying now? The fees are being paid , you may be surprised at how much. Problem is you will never get a straight answer. You should have taken an interest in the fees and “pay to play” a long time ago, it’s been adding up for years.
I’ve just about come to the conclusion that the Illinois Legislature just wants to pass some kind of “pension reform” whether they think it is constitutional or not and then leave it to the courts to determine the rest. Very quickly then they can tell the “taxpayers” and anybody else, “we tried.” Off the hook for a very long short time. I think we have to operate with that strategy in mind. I’m almost at the point that I agree…just stop the bullshit and get it over with. If any kind of of reform is a matter of constitutional doubt, “bring it on.”
Fred, are you dyslexic or am I crazy? That IS HB 3411, not 4311, right?! (I can’t keep all these bill #s straight anymore. But, you know, it’s a case of, “If you can’t dazzle ’em with your brilliance, baffle ’em with your b.s.!” Anyway, when confusion reigns, just say,” Vote NO on any pension killer bills!”
You’re right. My typo. I’ll fix. Thanks RBMK.