RE: Investment of Trust Fund or PRA's in the Private Sector
- Date: Fri, 04 Jun 1999 13:11:17 +0000
- From: Persyko <alpersyko@earthlink.net>
- Subject: RE: Investment of Trust Fund or PRA's in the Private Sector
As we conclude this informative dialogue, I would like to once again
raise the issue of private retirement funding. At a time when
employer-sponsored defined benefit plans are in a stunning and steady
decline, signficant inequities exist in employer-sponsored defined
contribution plans and over 50 million American workers have no
retirement plan at all it would seem we need to aggressively address
this issue along with Social Security reform. Social Security alone
cannot be expected to provide adequate retirement funding for American
workers, it is only a supplement to a sound private retirement plan.
We must encourage and offer assistance and incentives to corporations
to resume their social contract with their workers by providing decent
pension plans. We should also provide workers with every opportunity
to increase their own personal retirement savings through equitable
deductible IRA contributions, IRA payroll deductions and proportionate
representation of rank-and-file workers on investment committees for
defined contribution plans.
Finally, I would contend that investing is inherently somewhat
political. Even when investing in a broad-based index fund we are
still investing in individual companies. Investing in a company is a
vote of confidence representing an endorsement of that company's
products and/or services and policies. As long as companies attempt
to influence policy-making through lobbying and generous campaign
contributions, in this country and throughout the world, it is
disingenuous to suggest that investment has no political component.
Additionally, how do we vote our shares without taking into
consideration the "moral imperative" which we claim is driving our
foreign policy? Do we save Albanian refugees in Kosovo only to turn
our backs on workers in Saipan? Does fiduciary responsibility take
precedence over moral issues? Do we really want to blindly and
silently invest millions of dollars in companies which utilize
sweatshops, pay their CEO's 400-500 times the wage of their average
worker, degrade the environment, or jeopardize the health and
well-being of people throughout the world? I think any discussion of
investing the trust fund or establishing PRA's should include these
concerns.
Thank you,
Luita Persyko