America, What Happened?: Workers’ Retirement Security at Risk

Today, just 37 percent of all workers have some kind of traditional pension plan, and that number continues to drop, the Economic Policy Institute says. Many companies want to shift more responsibility for retirement savings to workers; others are using the bankruptcy courts to throw out their obligations to workers' retirement security.

Across every sector — airlines, manufacturing, communications services, even public employment — employers are looking for ways to renege on their promise of retirement security.

That makes keeping Social Security strong more important than ever. 

Although the Bush administration's effort to privatize Social Security failed last year, the president has made it clear that he hasn't given up on the plan. The administration has put in a 2007 budget request for $721 billion dollars over the next decade to cover start-up costs for privatization. "If we can't get it done this year, I'm going to try next year," President Bush said this summer. "And if we can't get it done next year, I'm going to try the year after that."

  This push comes despite hard evidence from economists that privatization will weaken the Social Security system, slash now-guaranteed benefits by as much as $9,000 per year, block recipients from controlling the funds in their own accounts, and add more than $4.9 trillion in debt over the next 20 years.

  In fact, none of the promises made about the benefits of privatization are true. The program, as outlined by the Bush administration, is not voluntary. Even if a recipient doesn't choose a private account, benefits will be cut by 40 percent. Participants won't be permitted to control their own private investments; those will be managed by Wall Street firms opening the door to politics, favoritism and corruption.

            "The Social Security program is one of our nation's most effective public initiatives — supporting not just retirees but millions of families and disabled Americans — and CWA will fight all efforts to weaken the security of working families," said CWA Executive Vice President Jeff Rechenbach.