WASHINGTON, July 17 – Sen. Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), today introduced the Pensions for All Act, sweeping legislation that would provide comprehensive retirement coverage to the more than 56 million working-class Americans who currently have no retirement plan through their employer.
“We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work,” Sanders said. “If we are serious about addressing the retirement crisis in America, corporations must be required to offer all of their workers a traditional pension plan that guarantees a monthly income in retirement. And if corporations refuse to offer a decent retirement plan, their workers must be allowed to receive the same type of pension that every member of Congress receives. If we can guarantee a defined benefit pension plan for members of Congress, we can and we must provide that same level of retirement security to every worker in America.”
In our country today, nearly half of older workers between the ages of 55 and 64 have no retirement savings at all and no idea how they will be able to retire with any shred of dignity or respect.
“If Congress can provide over $1 trillion in tax breaks for the top 1% and over $900 billion in tax breaks for large corporations, please do not tell me that we cannot afford to make sure that every worker in America can retire with the dignity and the respect they deserve,” Sanders continued.
Today, more than 22.8% of seniors in the United States live in poverty — compared to just 5.1% in Denmark, 5.8% in France, 12.6% in Germany and 14.8% in Canada. Unacceptably, nearly 22% of seniors in America are trying to survive on less than $15,000 a year while half of our nation’s elderly population makes less than $30,000 a year.
The Pensions for All Act would reverse this trend by requiring corporations to either:
Importantly, this legislation would also offer reduced contribution requirements for self-employed workers and small businesses.
The bill builds on Sanders’ Social Security Expansion Act, which would increase Social Security benefits by $2,400 a year and fully fund the program for the next 75 years by applying the Social Security payroll tax on all income above $250,000. Together, these bills would finally ensure retirement security for all.
The legislation is endorsed by United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), Association of Flight Attendants-CWA (AFA), Alliance for Retired Americans, Just Solutions, Equal Rights Advocates, Popular Democracy in Action and NETWORK Lobby for Catholic Social Justice.
“Fifty years ago, nearly 50% of American workers had a pension. Today, less than 10% do, and nearly half of older workers have no retirement savings at all. That isn’t a flaw in the system—it’s the system working exactly as the wealthy designed it. We’ve gone from being a country that promised security and dignity in old age to being a country that forces people to work until they’re in the grave. After a lifetime of hard work, every American deserves the promise of a secure, dignified retirement—not a future filled with fear, uncertainty, and poverty. Pensions have long been the bedrock of retirement for working-class people, but corporate greed has eroded that foundation. The billionaire class gutted pensions in pursuit of profit, and Washington let it happen. CEOs walk away with golden parachutes while working people walk into retirement with nothing. Meanwhile, every Member of Congress has a guaranteed pension—for life. If it’s good enough for them, it’s good enough for the people who build this country. The retirement crisis is real, and it’s time for Congress to act. Thank you to Senator Bernie Sanders—a leader who knows which side he’s on—for standing up for the working-class,” said UAW President Shawn Fain.
Read the bill text here.
Read a summary of the bill here.