Sanders Proposes 'Pensions for All' as Trump Aims to Open 401(k)s to Private Equity Vultures
"We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work," said Sen. Bernie Sanders.
U.S. Sen. Bernie Sanders introduced legislation Thursday aimed at addressing the nation's retirement security crisis as President Donald Trump reportedly prepared an executive order that would give private equity vultures easier access to the 401(k) plans that have overtaken traditional pensions.
Sanders' (I-Vt.) Pensions for All Act would require big corporations to either provide their workers with a pension plan that is at least as generous as the one enjoyed by members of Congress or "pay into the federal retirement system at a level that ensures all of their workers receive the same amount of retirement benefits" as lawmakers.
The senator characterized the new bill as a supplement to his proposal to expand Social Security benefits.
"We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work," Sanders said in a statement. "If we are serious about addressing the retirement crisis in America, corporations must be required to offer all of their workers a traditional pension plan that guarantees a monthly income in retirement."
"And if corporations refuse to offer a decent retirement plan, their workers must be allowed to receive the same type of pension that every member of Congress receives," the senator added. "If we can guarantee a defined-benefit pension plan for members of Congress, we can and we must provide that same level of retirement security to every worker in America."
"Every member of Congress has a guaranteed pension—for life. If it's good enough for them, it's good enough for the people who build this country."
Sanders introduced his bill after The Wall Street Journal reported that Trump is expected to sign an executive order in the coming days "designed to help make private-market investments more available to U.S. retirement plans"—a move that one critic called "a dangerous scheme to fleece savers."
"The retirement system is supposed to serve workers, not Wall Street," wrote Oscar Valdés Viera, a policy analyst with the advocacy group Americans for Financial Reform. "We need policies that strengthen retirement security and allow people to retire with dignity—not policies that invite hidden fees, reduced transparency, and elevated risk. Allowing predatory private equity and private credit funds to infiltrate 401(k)s would result in a massive transfer of wealth from small investors and workers to the richest men on Wall Street."
Supporters of Sanders' legislation similarly argued for retirement system reforms that benefit workers, not Wall Street and corporate executives.
Shawn Fain, president of the United Auto Workers—which has pushed the so-called Big Three automakers to restore traditional pension plans—said Thursday that "the billionaire class gutted pensions in pursuit of profit, and Washington let it happen."
"CEOs walk away with golden parachutes while working people walk into retirement with nothing," said Fain. "Meanwhile, every member of Congress has a guaranteed pension—for life. If it's good enough for them, it's good enough for the people who build this country. The retirement crisis is real, and it's time for Congress to act."
In a summary of the new legislation, Sanders' office observed that just 9% of private-sector workers in the U.S. currently have access to traditional defined-benefit pension plans—down from 44% in 1975.
"The results for workers have been tragic," Sanders' team continued, noting that "in our country today, nearly half of older workers between the ages of 55 and 64 have no savings at all and no idea how they will be able to retire with any shred of dignity or respect."
"If Congress can provide over $1 trillion in tax breaks for the top 1% and over $900 billion in tax breaks for large corporations," Sanders said Thursday, "please do not tell me that we cannot afford to make sure that every worker in America can retire with the dignity and the respect they deserve."
