The Pensions for All New Yorkers Petition

To:  New York State residents

Did you know that G.O.P. California Governor Arnold Schwarzenegger, AARP, the Fiscal Policy Institute here in New York (supported by many nonprofit groups and unions), Connecticut State Senate President Donald Williams, Connecticut Attorney General Blumenthal, the New America Foundation, and Dean Baker of the Center for Economic and Policy Research all support creating state-level pension funds open to all workers to supplement the current pension system-- also known as universal voluntary account-- as a good idea-- and very much needed?

It's true.

In fact, as Gov. Schwarzenegger stated in April on this, "Having a financially secure retirement is part of the American Dream and this bill will help that dream come true for millions of hardworking Californians and their families," supporting a new proposal to open the California Public Employees' Retirement System (CalPERS) to private sector businesses and workers to encourage Californians to save more, as proposed in Assembly Bill 2940 by Assemblyman Kevin de León, D-Los Angeles.  According to Scott Hauge, president of Small Business California, "A lot of small businesses do not have the resources to do this; this makes us more competitive."  The program would allow workers to have money deducted from their paychecks automatically if they wish, making it more likely that they would participate.
[from "Governor: Open CalPERS doors" by John Hill/Sacramento Bee April 9, 2008:
www.sacbee.com/111/v-print/story/848008.html]

The retirement plan, unlike 401(k) plans, could be taken by the worker from job to job. If the plan is approved by the Internal Revenue Service, CalPERS would administer it with fees paid by the account holders, at no expense to taxpayers. Several other states have considered similar programs. But de León's office said California would be the first to put one in place. AB 2940 would make California the first state in the nation to offer secure and portable individual savings accounts to working people. There are a litany of statistics proving how little workers put toward retirement, leaving them to subsist on Social Security payments. About 6 million California workers, 43 percent, work at jobs that don't offer retirement savings plans such as 401(k)s or traditional pensions that guarantee an income in retirement. Without enough income, retirees rely more on government services. If we don't help Californians save now, we the state will pay later.
[also from www.sacbee.com/111/v-print/story/848008.html]

The Connecticut AARP is launching an advertising campaign this week and releasing a report today that details the benefits of the plan for Connecticut families and businesses. The report, Analysis of Proposals to Broaden Private Pension Coverage and Retirement Savings through State-K Programs, details the growing retirement savings crisis in the nation, and specifically in Connecticut: 'If enacted, SB 652 would represent the first effort by a state to actively assist small employers to establish retirement plans for their employees.' The report finds that, "...nearly six out of 10 private sector workers in Connecticut do not participate in an employer-sponsored retirement plan," and, "...the prominent problem in the state of Connecticut is retirement plan coverage for the 36 percent of workers employed by small firms."
[see www.senatedems.ct.gov/pr/williams-080421.html]

According to Connecticut State Senate President Donald Williams, "this proposal will help people save for retirement and instantly give our small businesses a real advantage over out-of-state competitors; the fees associated with 401(k) plans have a disproportionate impact on people who work for small businesses; the result is that the majority of these employees don't have 401(k) plans, and at the same time, the small businesses are at a competitive disadvantage when it comes to recruiting workers.
[see www.senatedems.ct.gov/pr/williams-080421.html]

Start-up costs are minimal and could be recouped through administrative fees (in the same way that plans on the market recoup fees) and repaid to the General Fund over the first few years; the net cost to the state would therefore be zero; according to the Connecticut Comptrollers Office, under such a new 401(k) plan, investors could save about 50 percent on fees through a state-administered plan; this means that a typical worker earning $46,250, the average wage of a worker in the manufacturing sector, and saving 10 percent of their income would earn about $1.6 million toward retirement.
[see www.senatedems.ct.gov/pr/williams-080421.html]

Connecticut's proposal would authorize the Comptroller's Office to submit a Request for Proposals (RFP) with the goal of establishing a state-administered deferred compensation plan (which would include a 401(k) plan) open to any small employer, including those who wish to participate by contributing on behalf of employees who participate; the plan would be initiated and administered by the Comptroller's Office.
[see www.senatedems.ct.gov/pr/williams-080421.html]

As Fiscal Policy Institute Executive Director Frank Mauro wrote for their November 2006 "One New York" report on pages 45 and 46: "Pensions are a source of increasing insecurity and cost pressure for all workers. Those who have pensions through their employer are being asked to contribute increasing amounts to it, and those who don't are straining to set up and manage their own 401(k) or similar account. The governor and the legislature can help by setting up a single fund to which all New Yorkers can contribute pre-tax dollars. The fund might offer options for accounts that offer defined benefits as well as traditional retirement accounts. The cost savings to people making contributions could be considerable, since fees on a large single fund would be substantially smaller than individual accounts. As with the state's common retirement fund for state and local government workers, professional management of a large state fund has shown that returns will be greater than small investors typically receive. Of course, a voluntary state retirement system for all New York workers would in no way substitute for the current system of public sector pension plans."
[see www.FiscalPolicy.org/OneNewYork.html]

As Michael Calabrese wrote for the New America Foundation on this in February 2007 in his "Ten Big Ideas for a New America" essay, specifically for "A Universal 401(k) Plan": "Individual Career Accounts would supplement, not supplant, the existing private pension system. For those with access, America's private pension system provides powerful saving incentives: tax breaks and employer contributions, as well as the convenience and discipline of automatic payroll deduction and professional asset management. Unfortunately, this employer-based system covers only half of all workers. Moreover, two-thirds of the tax breaks for retirement saving go to the most affluent 20 percent who would save anyway. The solution is a Universal 401(k) plan. All workers would have the option to contribute automatically to their own plan by payroll deduction -- and the government would match voluntary deposits with refundable tax credits deposited directly into the worker's account. This supplemental system would make retirement saving easier, automatic, fully portable, and fair."
[see www.NewAmerica.net/publications/policy/a_universal_401_k_plan]

John Erlingheuser, Advocacy Director for AARP Connecticut, made the following statement in April in support of this bill on behalf of the more than 625,000 AARP members in Connecticut:

[from www.cga.ct.gov/2008/JFR/S/2008SB-00652-R00CE-JFR.htm]

"Improving access, coverage and adequacy of pension and other retirement saving vehicles is a major priority for AARP, so they support this bill because it helps to do just that. Since AARP serves the aging population, which is growing rapidly due to the aging of the baby boomer population, planning for retirement is very important to them. They say only about 50% of the workforce has some kind of retirement coverage. Attempts have been made to expend coverage for private sector workers over the past 3 decades or more, but without much success. They think that 'in light of an aging population, the disappearance of guaranteed pensions in the private sector, low or negative savings rates, and the drumbeat of negative news about the long-run solvency of the Social Security System, the time is right for something different.'

Although retirement plans of any kind are extremely beneficial to those who have them, this can be a cause of concern for state taxpayers who have no pension and view this as being taxed to help fund what they see as generous public and retiree benefits. This bill may help eliminate 'pension envy' while still making great use of the resources the state can provide. Although the state would serve as an aggregator and facilitator for the private employers and their workers, this voluntary account system would truly be voluntary because it still would be essentially market-led, not government-run. The businesses are not mandated to participate in this voluntary accounts system.

There are many strong points to this bill that they see. One is that it is flexible. 'Since the majority of middle-earners in the U.S. do not set aside as much as the maximum amount allowed for an IRA (currently $5,000; $6,000 for someone who is 50+ years old), a payroll deduction IRA would fill the bill quite nicely in launching Connecticut's citizens on a path to improved retirement income security.' The passage of this bill would also add to Connecticut's 'bragging rights' with current and prospective employers and employees as an appealing feature. These voluntary accounts can be seen as part of the state's economic development initiatives, and also save the state money in the long run – if there is a lack of access to participate in retirement plans, the state would possibly have to “pick up the pieces for many individuals who become impoverished in their later years” without that extra support.

Expanding the already existing voluntary retirement-savings plans through the Comptroller can be done in 'a very low-cost, low-risk, non-coercive way that employers find appealing' because in trying to provide retirement savings plans on their own, employers may face prohibitive fees to set up, operate, and monitor retirement accounts.' The cost for the state would be very minimal because after a modest cost for setting the system up initially, the operation would be able to sustain itself with fees from plan participants. 'In an era when the federal government seems unable or unwilling to take bold steps in the area of employee benefits, voluntary accounts represent an opportunity for the states to take the lead on a vitally important national issue.'"

If you agree that all of us in Dutchess County (including our County Legislature) should be pushing Albany on this-- on behalf of all of the senior citizens, all of the small businesses, and all of the workers of our county, sign on to this petition, send a letter to the Dutchess County Legislature at countylegislators@co.dutchess.ny.us in support of the resolution submitted May 18th by yours truly on this-- and call Governor Paterson and state legislators on this toll-free at (877) 255-9417 (pass it on).

Joel Tyner
Dutchess County Legislature Environmental Committee Chair
County Legislator, Clinton/Rhinebeck
324 Browns Pond Road
Staatsburg, NY 12580
joeltyner@earthlink.net
(845) 876-2488

[see much more on this at these four links:
http://www.stateinnovation.org/docs/webpagebakerarticle.pdf ;
http://www.cepr.net/index.php?option=com_content&task=view&id=646 ;
http://www.cepr.net/documents/publications/universal_voluntary_accounts.pdf ;
http://www.newamerica.net/pressroom/2008/ca_pension_bill_sacramento_bee_plan_open_calpers_reflects_worry_about_inadequate_saving_retirement ]

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[text here below of resolution submitted May 18, 2008 on this]

WHEREAS, California Governor Arnold Schwarzenegger, AARP, the Fiscal Policy Institute, Connecticut State Senate President Donald Williams,Connecticut Attorney General Blumenthal, the New America Foundation, and the Center for Economic and Policy Research all agree that state-level pension funds open to all workers, to supplement by going above and beyond (not replace) the current pension system, also known as universal voluntary accounts, are a much needed good idea, and

WHEREAS, we have an historic opportunity to rescue a pension-less population, with virtually no liability or cost to taxpayers; almost half of Dutchess County's workers, the self-employed or employees of smaller businesses, have no retirement security; a state-level 401(k) plan would put the state behind small businesses and employees, empowering them to obtain vital benefits, and

WHEREAS, often workers are left with little to save for retirement, leaving them to subsist on Social Security payments; almost half of all New York workers work at jobs that don't offer retirement savings plans such as 401(k)'s or traditional pensions that guarantee an income in retirement; without enough income, retirees rely more on government services; if we don't help Dutchess County residents save now, taxpayers will pay later, and

WHEREAS, as Gov. Schwarzenegger stated in April on this, "having a financially secure retirement is part of the American Dream and this bill will help that dream come true for millions of hardworking Californians and their families," supporting a proposal to open the California Public Employees' Retirement System (CalPERS) to private sector businesses and workers to encourage Californians to save more, as proposed in Assembly Bill 2940 by Assemblyman Kevin de León, and

WHEREAS, according to Scott Hauge, president of Small Business California, "a lot of small businesses do not have the resources to do this; this makes us more competitive"; the program would allow workers to have money deducted from their paychecks automatically if they wish, making it more likely that they would participate; the retirement plan, unlike 401(k) plans, could be taken by the worker from job to job, and

WHEREAS, CalPERS would administer this plan with fees paid by the account holders, at no expense to taxpayers; start-up costs are minimal and could be recouped through administrative fees (in the same way that plans on the market recoup fees) and repaid to the General Fund over the first few years; the net cost to the state would therefore be zero; according to the Connecticut Comptrollers Office, under such a new 401(k) plan, investors could save about 50 percent on fees through a state-administered plan; this means that a typical worker earning $46,250, the average wage of a worker in the manufacturing sector, and saving 10 percent of their income would earn about $1.6 million toward retirement, and

WHEREAS, the Connecticut AARP launching an advertising campaign this April and releasing a report detailing the benefits of a similar plan for Connecticut families and businesses; the report, "Analysis of Proposals to Broaden Private Pension Coverage and Retirement Savings through State-K Programs", details the growing retirement savings crisis in the nation, and specifically in Connecticut: "nearly six out of 10 private sector workers in Connecticut do not participate in an employer-sponsored retirement plan; the prominent problem in the state of Connecticut is retirement plan coverage for the 36 percent of workers employed by small firms", and

WHEREAS, as the Fiscal Policy Institute noted in its November 2006 "One New York" report, "pensions are a source of increasing insecurity and cost pressure for all workers; those who have pensions through their employer are being asked to contribute increasing amounts to it, and those who don't are straining to set up and manage their own 401(k) or similar account; the governor and the legislature can help by setting up a single fund to which all New Yorkers can contribute pre-tax dollars; the fund might offer options for accounts that offer defined benefits as well as traditional retirement accounts," and

WHEREAS, the Fiscal Policy Institute also noted then that, "the cost savings to people making contributions could be considerable, since fees on a large single fund would be substantially smaller than individual accounts; as with the state's common retirement fund for state and local government workers, professional management of a large state fund has shown that returns will be greater than small investors typically receive; of course, a voluntary state retirement system for all New York workers would in no way substitute for the current system of public sector pension plans," and

WHEREAS, according to the New America Foundation in February 2007, "for those with access, America's private pension system provides powerful saving incentives: tax breaks and employer contributions, as well as the convenience and discipline of automatic payroll deduction and professional asset management; unfortunately, this employer-based system covers only half of all workers; two-thirds of the tax breaks for retirement saving go to the most affluent 20 percent who would save anyway," and

WHEREAS, according to Connecticut State Senate President Donald Williams, "this proposal will help people save for retirement and instantly give our small businesses a real advantage over out-of-state competitors; the fees associated with 401(k) plans have a disproportionate impact on people who work for small businesses; the result is that the majority of these employees don't have 401(k) plans, and at the same time, the small businesses are at a competitive disadvantage when it comes to recruiting workers," and

WHEREAS, Connecticut's proposal would authorize the Comptroller's Office to submit a Request for Proposals (RFP) with the goal of establishing a state-administered deferred compensation plan (which would include a 401(k) plan) open to any small employer, including those who wish to participate by contributing on behalf of employees who participate; the plan would be initiated and administered by the Comptroller's Office, and therefore be it

RESOLVED, that the Dutchess County Legislature requests that our state legislature pass and governor sign into law legislation for a universal voluntary account state-level 401 (k) pension fund open to all workers to supplement by going above and beyond (but not replace) the current pension system, as supported in New York by the Fiscal Policy Institute, in California by Small Business California and Governor Arnold Schwarzenegger and in Connecticut by the AARP, and across the country by the New America Foundation and the Center for Economic and Policy Research, and be it further

RESOLVED, that a copy of this resolution be sent to Governor David Paterson, state Senators Vincent Leibell and Stephen Saland, and Assemblymembers Greg Ball, Kevin Cahill, Tom Kirwan, Joel Miller, and Marcus Molinaro.

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From http://www.sacbee.com/111/v-print/story/848008.html...

Governor: Open CalPERS doors
He touts pension bill letting private sector join the state system.
By John Hill - jhill@sacbee.com
Published 12:00 am PDT Wednesday, April 9, 2008

Gov. Arnold Schwarzenegger threw his political heft Tuesday behind a new proposal to open the California Public Employees' Retirement System to private sector businesses and workers to encourage Californians to save more for retirement.
"Having a financially secure retirement is part of the American Dream and this bill will help that dream come true for millions of hardworking Californians and their families," Schwarzenegger said in a prepared statement.

The proposal to open CalPERS to the private sector is contained in Assembly Bill 2940 by Assemblyman Kevin de León, D-Los Angeles.

AB 2940 would allow Californians whose employers don't offer retirement savings plans to put money into the California Employee Savings Program.

Employers without retirement plans could also participate.

The retirement plan, unlike 401(k) plans, could be taken by the worker from job to job. If the plan is approved by the Internal Revenue Service, CalPERS would administer it with fees paid by the account holders, at no expense to taxpayers.
Several other states have considered similar programs. But de León's office said California would be the first to put one in place.

"AB 2940 will make California the first state in the nation to offer secure and portable individual savings accounts to working people," de León said at a press conference Tuesday.

De León ran through a litany of statistics to show how little workers put toward retirement, leaving them to subsist on Social Security payments. About 6 million California workers, 43 percent, work at jobs that don't offer retirement savings plans such as 401(k)s or traditional pensions that guarantee an income in retirement.

Without enough income, retirees rely more on government services, de León said.

"If we don't help Californians save now, we the state will pay later," he said.

In the original bill, only low- and moderate-income workers would have been eligible to participate. But de León said Tuesday that the bill is being revised to eliminate income requirements.

Workers now can put money into savings accounts such as IRAs, even if their employers don't offer 401(k)s.

But de León said that the Cal-PERS accounts would offer attractions not found in the commercial market. Fees would be lower, he said, and CalPERS has a long track record of stellar investment returns.

The program would allow workers to have money deducted from their paychecks automatically, making it more likely that they would participate. De León said one challenge would be to get workers never involved in financial markets to sign up.
"This is about behavior modification, too," he said.

Small business groups appeared with de León to support the bill.

"A lot of small businesses do not have the resources to do this," said Scott Hauge, president of Small Business California. "This makes us more competitive."

The bill is being sponsored by the New America Foundation, a nonprofit, nonpartisan policy group.

CalPERS spokesman Brad Pacheco said the retirement system learned about the bill just recently and is analyzing it. The CalPERS board normally votes to support or oppose legislation affecting the retirement system.

The union that represents the single largest contingent of state workers said it was taking a "wait-and-see attitude."
"We support the goals of the legislation," said Jim Zamora, spokesman for Service Employees International Union Local 1000, which represents 92,500 state workers. "But we're not sure how all this will play out in terms of how it will affect CalPERs and restructuring of CalPERs.

"We're very happy with CalPERs as far as it being a safe, reliable investment vehicle for pensions. We don't want to see any legislation passed that would weaken that."

The bill is scheduled for its first hearing today in the Assembly Committee on Public Employees, Retirement and Social Security.

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From http://www.senatedems.ct.gov/pr/williams-080421.html...

April 21, 2008
1st of its Kind Universal 401(k) Plan Hits National Radar Screen
AARP to launch Connecticut campaign to offset intense lobbying from special interest groups

Senate President Donald E. Williams, Jr., joined Attorney General Richard Blumenthal, House Majority Leader Chris Donovan, AARP National Director of Government Relations David Sloane, and dozens of concerned citizens at a news conference today to announce the beginning of an aggressive two-week campaign to help Connecticut become the first state to offer a universal 401(k) plan.

SB 652, AN ACT CONCERNING SMALL BUSINESS RETIREMENT PLANS, which was first announced in February and currently awaits action by the Senate, calls for the state to serve as a catalyst, pooling together employees from small businesses across the state in order to create an inexpensive 401(k) plan.

While support for the plan among members of the public and legislators has steadily grown, lobbyists for national special interest groups have mobilized against the legislation. They claim the plan would be too costly and that it would have no real benefit to workers or employers.

"Our proposal will help people save for retirement and instantly give our small businesses a real advantage over out-of-state competitors," said Senator Williams. "The fees associated with 401(k) plans have a disproportionate impact on people who work for small businesses. The result is that the majority of these employees don't have 401(k) plans, and at the same time, the small businesses are at a competitive disadvantage when it comes to recruiting workers. We're ready to take on the special interests and fight for working families and small businesses here in Connecticut."
"Connecticut has an historic opportunity to rescue a pension-less population--with virtually no liability or cost to the state," Blumenthal said. "Almost half the nation's citizens--the self-employed or employees of smaller businesses--have no retirement security. Financial insecurity can tarnish the golden years--imperiling individuals and the entire economy. A 'State K' would put the state behind small businesses and employees, empowering them to obtain vital benefits."

The AARP is launching an advertising campaign this week and releasing a report today that details the benefits of the plan for Connecticut families and businesses. The report, Analysis of Proposals to Broaden Private Pension Coverage and Retirement Savings through State-K Programs, details the growing retirement savings crisis in the nation, and specifically in Connecticut:

•"If enacted, SB 652 would represent the first effort by a state to actively assist small employers to establish retirement plans for their employees."

• The report finds that, "...nearly six out of 10 private sector workers in Connecticut do not participate in an employer-sponsored retirement plan," and, "...the prominent problem in the state of Connecticut is retirement plan coverage for the 36 percent of workers employed by small firms."

One significant reason for this problem is that due to their size, small businesses cannot achieve the economies of scale that make 401(k) programs useful to their employees; fees are too high to allow meaningful growth for retirement.

Our Proposal: Authorize the Comptroller's Office to submit a Request for Proposals (RFP) with the goal of establishing a state-administered deferred compensation plan--which would include a 401(k) plan--open to any small employer, including those who wish to participate by contributing on behalf of employees who participate. The plan would be initiated and administered by the Comptroller's Office.

Cost: Start-up costs are minimal and could be recouped through administrative fees (in the same way that plans on the market recoup fees) and repaid to the General Fund over the first few years. The net cost to the state would therefore be zero.

Background: The state of Connecticut currently operates a 401(a) defined contribution plan, an IRC section 457 deferred compensation plan, and a 403(b) retirement savings plan for state employees. According to the State Comptrollers Office (OSC), the new 401(k) plan, which would be regulated by the Employee Retirement Income Security Act of 1974 (ERISA), would not be open to state employees.

The cost reductions could enable access to plans for the employees of those small businesses that currently do not offer such retirement plans to their employees. The OSC estimates that investors could save about 50 percent on fees through a state-administered plan. This means that a typical worker earning $46,250--the average wage of a worker in the manufacturing sector--and saving 10 percent of their income would earn about $1.6 million toward retirement.

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From http://www.stateinnovation.org/docs/webpagebakerarticle.pdf...

GROWING THE MIDDLE CLASS

Proposal for Universal Voluntary Accounts

Dean Baker

States can help employees save for retirement – and local businesses cut red tape while
improving benefits – by sponsoring a system of voluntary benefit plans

The Problem

The bulk of the work force is currently approaching retirement with little more than their
Social Security benefit to support them in their old age. This is due to a sharp falloff in
personal savings and the rapid decline of the traditional defined benefit (DB) pension
system. While defined contribution (DC) plans such as 401(k)s have replaced DB plans,
most workers with DC plans accumulate relatively little money in their accounts.1 

This is due to the fact that employers often make limited contributions, workers
frequently cash out their holdings when they change jobs, and the administrative fees
charged by the financial industry often eat up a large portion of the earnings in these
accounts. Small businesses and their employees are especially disadvantaged under the
current system since small business owners lack the time and expertise to set up pensions
for their workers. 

The Solution

A system of universal voluntary accounts (UVA) is an important first step toward
addressing this problem. At the most basic level, the UVA is a system of defined
contribution accounts administered through the state (the management of the accounts
and the investment of the funds could be contracted out), modeled after the Federal
Employees Thrift Savings Plan. This system would accomplish 3 important goals:

1) Immediately give every worker in the state a low cost defined contribution
account, to which they could contribute directly from their paycheck;

2) Provide an account that is fully portable; workers could contribute to the same
account regardless of where they worked, or if they are self-employed for a period
of time;
  
3) Give small employers the ability to provide their workers with a decent pension
(employers could contribute to the accounts as well), with almost zero paper work
and with no fiduciary obligations whatsoever.

The system of UVAs could be an important first step towards increasing retirement
income. Simply reducing administrative fees from the levels charged by many private
managers of DC accounts would increase accumulations in DC accounts by 25-30%.
Insofar as the system provided workers and employers more incentive to contribute by
making the process easier, or by discouraging withdrawals with job changes, the impact
will be considerably larger. 

The Cost 

The UVA system should be self-supporting (costs to be paid from account fees) apart
from some minimal start-up costs ($5-$10 million) that may have to be initially borne by
the state. The only burden it would impose on employers is the requirement that they pass
along at regular intervals (monthly or quarterly) any contribution that their workers elect
to make to the UVA system. Employers are not obligated to make any contribution of
their own, although they would have this option. 

How to Get Started 

The Economic Opportunity Institute (EOI) in Washington State has taken the lead in
trying to introduce a system of UVAs. They have worked through many of the legal
obstacles that governments would encounter in establishing a UVA system. It is very
likely that Washington will introduce a UVA system in the next legislature. Mark Iwry, a
scholar affiliated with the Brooking Institution and a former Treasury official has worked
extensively with EOI in designing a UVA system that complies with federal pension
rules. 

Political Support 

This is a proposal that has attracted considerable support across the political spectrum.
Polling in Washington State found approval in the 80-90% range regardless of party
affiliation.2 EOI found that small businesses were especially interested in the idea since
they wanted to be able to offer their workers a pension without having to deal with the
paperwork necessary to make it possible under the current system. The Conversation on
Coverage, a multi-year project of the Pension Rights Center that includes representatives
of business, labor, the financial industry and academia developed a similar proposal
through a consensus process. 

Extensions 

The UVA proposal is also a great first step towards a larger agenda on retirement income.
If the accounts are successful in the first states that adopt them, then there will be
pressure to adopt them elsewhere or to create a national system. In principle, it would be
possible to offer a DB option in these accounts (e.g. $1,000 contributed at age 35 buys a
worker an annuity of $100 a month at age 65), although this may require changes in
federal regulations. Also, states may opt to require default contributions to UVAs
whereby workers would contribute a modest amount (e.g. 3% of wages) to the accounts,
unless they requested not to have the money deducted from their paychecks. The UVAs
can be a very big step toward ensuring that more workers have a decent retirement. 

Sincerely,

The Undersigned

The The Pensions for All New Yorkers Petition Petition to New York State residents was created by members of the Real Majority Project and written by Dutchess County Legislature Environmental Committee Chair Joel Tyner (joeltyner@earthlink.net).  This petition is hosted here at www.PetitionOnline.com as a public service. There is no endorsement of this petition, express or implied, by Artifice, Inc. or our sponsors. For technical support please use our simple Petition Help form.