July 27, 2012
--- Senator Tom Harkin’s (D-Iowa) new report, "The
Retirement Crisis and a Plan to Solve It," has received mixed
reviews. ---
The heart of his plan is a new system of privately run pension plans, which
requires that individuals who are not covered by an employer-sponsored
retirement plan be automatically enrolled in regulated, privately run retirement
funds. This concerns David John, senior research fellow at the Heritage
Foundation.
“We’re delighted the senator is looking at the issue,” he told PLANADVISER. “At the same time, it has
some fairly significant weaknesses compared to some of the other proposals that
are out there. The problems that we’ve got with it include the fact that it
appears the senator is creating a large central pension plan that will directly
compete with many of the existing plans.”
Others see the plan as a solution for the retirement savings crisis.
“The report makes a compelling case for a new private retirement system that
would provide a meaningful supplement to Social Security for the millions of
employees whose employers do not offer pensions or retirement savings plans,” said
Karen Friedman, the Pension Rights Center’s executive vice president and policy
director. “The report also makes common-sense recommendations for strengthening
Social Security, the foundation of our nation’s retirement system. Together,
these measures would help ensure that all Americans can retire with security
and dignity.”
The report is available here.