24th August 2012, 12:53 AM
Should ERISA be overturned to save the U.S. Economy?
Employee Retirement Income Security Act - Wikipedia, the free encyclopedia
ERISA (Employee Retirement Income Security Act of 1974) is a federal law that establishes minimum standards for pension plans in private industry and provides for extensive rules on the federal income tax effects of transactions associated with employee benefit plans. In other words it was enacted to protect the interests of employee benefit plan participants and their beneficiaries. More of this is explained in the above link.
The reason why I brought ERISA to attention is because I overheard that there's something in this piece of legislation that will cause a catastrophic economic collapse between 2012-2016 which would raise food prices up to 48%, energy prices to 23%, wheat to 74%, and gas prices to 68%. Now supposedly the act was passed to protect the retirement accounts of employees. In reality, ERISA transferred the expense of retirement “from the employer to the employee.” Because of this transfer those employees who religiously put money in their retirement accounts (401k) will do the wrong thing when the crash occurs and panic by selling alot of stocks because “they will react as most untrained investors react.”
Baby boomers that turn 70 are supposed to be forced to exit their retirement plans or face nasty consequences. And since a lot of them turn 70 between now and 2016, this will cause a mass exodus that will make the stock market crash as long as ERISA stays into law unless it is overturned by the Supreme Court for a new piece of legislation that would benefit the U.S. Economy alot more. Here's some more sources regarding this and bare with me I'm doing the best I can to try to post a sypnosis on this.
ERISA’s Dirty Little Secrets: What You Need to Know: Frank N. Darras Recommends Baby Boomers Consider Private Retirement Plans
Rich Dad’s Prophecy: Why the Biggest Stock Market Crash is Still Coming | Book Reviews