A National Retirement System, Part II

Now, what are workable elements of a national retirement system? First, change social security regulations to raise the cap in income on which social security will be paid to $5000,000 and include all income from ALL sources, not just wages and salaries. Second, for those persons whose sole income is from business income, rentals, capital gains and all other non-salaries and wages sources, the rate of taxation would be 10.0 percent, up to a cap of $1,000,000 in income.

Second, set new levels of payments to balance with the projected level of income into the national retirement system, and inform the public of those new levels. Then require all require all organizations operating their own separate retirement programs to hold a referendum among all of its employees whether to continue the separate retirement program or close it down and dispense all of the accumulated funds to its employees equitably, based on employee wage and salary levels and length of service. Then require all of those organizations to increase wages by the amount that would have gone into operation and management of the retirement program and to direct payments into the program.

It would not take long before unions and independent workers would realize that they would benefit from increased wages, and from the payout of the organization’s retirement program, and that they would have the freedom to decide how to use the funds from the payout – whether to invest for enhanced retirement or spend now.
Now, what would be the benefits of such a national retirement program? The following are some the major ones:
• All workers would be credit for the entirety of their work during their entire lives.
• Reduced business costs
• Higher wages and salaries.
• Huge economic boosts, both from substantially greater senior income and from the payouts from the closing of other retirement programs.
• Decreased poverty and improved health among the elderly.
• Better quality of life and mental health among the elderly.

What is the downside? The only downside that I can see is the loss of some jobs of some corporate retirement system mangers, and a reconfiguration of retirement investment funds in the money management sector. Those are minor consequences.

With these results, I believe that have both the moral and patriotic imperatives to get it done. Let’s spread the word and get to it.