Hungary, Ireland And Others Snatch Retirement Accounts Is California Next?
January 5, 2011 Leave a comment
The avalanche of failing governments in Europe has left many legislators with no choice but to seize European taxpayer savings and pension accounts to cover the governments’ bills.
The seizure of pension accounts is easily accomplished in Europe as the state organizes and is in charge of said accounts.
The extended recession has left many countries no choice but to get ‘creative’ with their bookkeeping to continue services or face possible riots like Greece.
Take Hungary, last month they made a deal with its citizens, either hand over all their savings to the government or lose all their state pension money. Adding insult to injury, citizens must still pay into those defunct accounts.
According to Christian Science Monitor, “The government wants to gain control over $14 billion of individual retirement accounts.”
Hungary is not alone in its quest to grab hard-earned money from employees. “The Bulgarian government has come up with a similar idea,” CSM said. “An additional $300 million of private early retirement savings was supposed to be transferred to the state pension scheme. The government gave way after trade unions protested and finally only about 20 percent of the original plans were implemented.”
Poland is another country on the brink and wants to confiscate approximately one-third of the state-run Social Security program which adds up to $2.3 billion per year. The newly imposed program hopes to bridge the financial gap for several years while leaving retirees with empty pockets.
Ireland, who has made front page news in the U.S. for disgruntled taxpayers, will also raid the National Pension Reserve Fund. The fund was supposed to provide retirement money for workers who need a pension in the years 2025-2050.
However, the bailouts began last year with the banks and with the country going belly-up, the government gobbled up the entire $6.5 billion.
Once the outrage subsides about foreign governments seizing employee pensions, many will question, ‘who will take care of them when they can no longer work?’
America’s most progressive states California, Illinois and New York are nearly bankrupt, concerned Americans must begin to wonder if their savings accounts are next?