Business Finances and regulatory reform.

[carol b]

Congress is looking at reforming retirement planning this week.

The proposed retirement system that the subcommittee is examining is the brainchild of Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis at the New York-based New School for Social Research, who was interviewed by Money magazine earlier this year Ghilarducci’s plan would allow the continued existence of 401(k)s but remove tax breaks on contributions and earnings. In her new, self-published book, When I’m Sixty-Four: The Plot Against Pensions and the Plan to Save Them, she describes a mixed retirement system composed of Social Security, employer defined-benefit pension plans, and a new type of personal retirement savings account known as a Guaranteed Retirement Account (GRA).
Ghilarducci told Money that under her plan, whatever contributions you’ve made to your 401(k) still won’t be taxed, but most people will have to contribute 5 percent of salary to a GRA. Only that amount will be pre-tax, and the government will contribute $600 per year.

This move would have many business's up in arms but it is time to think about the real future of our employees. We ourselves will have to retire someday. If our companies fail at some point we have to plan for that. If we don't keep track of our expenses and the like no one will. I am curious to see how they will work this out it will have to be of benifit to business owner and employee alike. I am worried however that it is going to end up being another government pocket filler in the end.