Connect with us

Politics

Your Retirement Savings: Obama Proposal

Published

on

President Barack Obama outlines plans for cybersecurity and Internet access during a visit to the Federal Trade Commission. (AP Photo/Carolyn Kaster)

(AP Photo/Carolyn Kaster)

Jim Kuhnhenn, ASSOCIATED PRESS

 
WASHINGTON (AP) — The Obama administration is proposing tougher restrictions on brokers who manage Americans’ retirement accounts, reigniting a confrontation with the financial services industry over rules affecting trillions of dollars in 401k and other savings accounts.

The change would put brokers — who sell stocks, bonds, annuities and other investments — under the stricter requirements for registered financial advisers when they handle clients’ retirement accounts.

In a long-anticipated move, the Labor Department is making the proposal Monday to the White House Budget Office. After an internal review, it likely will be put out for public comment for several months. Obama was scheduled to address the AARP later Monday to draw attention to the plan.

The rule has been the subject of intense behind-the-scenes lobbying, pitting major Wall Street firms and financial industry groups against a coalition of labor, consumer groups and retiree advocates such as the AARP.

The administration first proposed a regulation in 2010, but pulled it back following an industry outcry that the proposal would hurt rather than help investors by limiting choices.

To buttress the new effort, the White House on Monday released a 30-page report from its Council of Economic Advisers noting that an estimated $1.7 trillion of individual retirement account assets are invested in products that pay fees or commissions that pose conflicts of interest.

“When you go to a doctor or a lawyer, you expect the advice you get to be in your best interests. But the same doesn’t always hold true in the world of retirement savings,” Labor Secretary Tom Perez said in a conference call with reporters. “Many financial advisers have taken an oath to serve your best interests, but there are other financial advisers and brokers who provide critical financial advice every day and are not obligated to look out for your best interests.”

Americans increasingly are seeking financial advice to help them navigate an array of options for retirement, college savings and more. Many people provide investment advice, but not all of them are required to disclose potential conflicts of interest.

Under current rules, brokers are required to recommend only “suitable” investments based on the client’s finances, age and how much risk is appropriate for him or her. The rules would make brokers handling retirement accounts obligated to put their clients’ interests first.

The chairman of Obama’s Council of Economic Advisers, Jason Furman, pointed to academic studies that conclude investors who receive investment recommendations potentially influenced by conflicts of interest sustain a 1 percentage point lower return on their retirement savings, totaling losses of $17 billion every year to middle-class families.

Industry officials dispute those studies and say the industry is well governed by financial regulators like the Securities and Exchange Commission. They say the Department of Labor is ill suited to write rules best left to agencies more familiar with the financial industry.

“You have the Department of Labor, which really doesn’t know this area,” said Ira Hammerman, general counsel for the Securities Industry and Financial Markets Association, the brokerage industry’s big lobbying group. “Our concern is they are not going to get it right, just like they did not get it right in 2010.”

AFL-CIO President Richard Trumka said the proposed protections are overdue, noting that much of the current regulatory regime was set before 401ks and IRAs gained prominence as retirement savings vehicles. He predicted a difficult path to a final rule, however, given the financial industry’s opposition.

Meanwhile, the SEC is studying the broader investment advice industry to determine whether it should come under further regulations. Critics of the Labor Department effort say the Obama administration should leave the regulations to the SEC or it will risk limiting the advice available to investors with relatively small retirement savings.

“Investors benefit from choice; choice of products, and choice in advice providers,” SEC Commissioner Daniel Gallagher, a critic of the Labor Department proposal, said in a speech Friday. “This is something the nanny state has a hard time comprehending.”

Perez and Jeff Zients, director of the White House National Economic Council, said administration officials have been consulting with SEC Chairman Mary Jo White, financial industry officials and consumer groups.

Zients said the proposed rule would be “very different” from the restrictions the administration proposed in 2010.

“Much has been learned since then,” he said.

___

Associated Press writer Marcy Gordon contributed to this report.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

###

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Activism

Stop the Hate Symposium Brings Oakland Together Through Dialogue, Partnership, and Community Healing

 More than a meeting and panel discussion, the annual symposium serves as a powerful example of what can happen when neighbors, community leaders, and organizations choose conversation over division, and unity over silence.

Published

on

Speakers and guests at the annual ‘Stop the Hate Symposium posed with Oakland Chinatown Improvement Council ambassadors. Photo by Marcus Calloway.
Speakers and guests at the annual ‘Stop the Hate Symposium posed with Oakland Chinatown Improvement Council ambassadors. Photo by Marcus Calloway.

By Dr. Maritony Jones, Special to The Post

With the purpose of creating safer, stronger, and more inclusive communities, and in partnership with the Oakland Private Industry Council and other community organizations, the Oakland Chinatown Improvement Council (OCIC) hosted the ‘Stop the Hate Symposium’ on June 13 at the Oakland Asian Cultural Center.

More than a meeting and panel discussion, the annual symposium serves as a powerful example of what can happen when neighbors, community leaders, and organizations choose conversation over division, and unity over silence.

The free event featured keynote speakers, breakout sessions, cultural programming, creating a space where people from many backgrounds sat together with a shared purpose.

The turnout itself reflected the urgency and importance of the topic. The room was packed with community members eager not only to listen, but also to participate. Throughout the event, speakers shared data, personal experiences, research, and practical solutions designed to address hate, violence, social inequity, and community safety.

The keynote panel featured respected leaders and advocates, including Ray Bobbitt, founder of the African American Sports & Entertainment Group (AASEG); Ryan Takemiya from RAMA; Caheri Gutierrez from the Unity Council; honorary guest speaker Oakland City Councilmember at-Large Rowena Brown and City Councilmember Charlene Wang; representatives for Oakland Mayor Barbara Lee and U.S. Rep. Lateefah Simon, with Gia Vang of NBC serving as moderator.

The symposium also offered multiple breakout sessions that addressed issues affecting communities across Oakland and Alameda County:

  • Session 1, 2, 3: Building Safer and More Inclusive Communities, led by Pastor Raymond Lankfort, CEO of Oakland Private Industry Council (OPIC), Jessica Kang, research manager for Stop AAPI Hate, Kara Guerra of The Unity Council, and Gabriela delaRiva of the Spanish Speaking Citizens Foundation
  • Session 4: Talk Story: Collective Healing and Relationship Repair, presented by Ryan Takemiya, executive director of RAMA
  • Session 5: Sexual Violence Prevention, presented by Tunisia Owens, interim deputy director of Realized Potential
  • Session 6: Violent Attacks on Teens, presented by MaryAnn Alvarado, program manager of Youth Alive

Every session contributed to an important truth: meaningful change begins within communities, through honest dialogue and a willingness to work together.

One of the strongest themes to emerge from the day was the need to create more conversations and stronger partnerships—not just during times of crisis, but consistently and intentionally. Relationships among organizations, neighborhoods, and community leaders often operate behind the scenes but are not always highlighted or celebrated.

Bobbitt spoke powerfully about this issue, noting that partnerships and relationships often go unrecognized despite being essential to community progress. He pointed to examples such as the partnership between OPIC and OCHIC, emphasizing that these collaborations deserve more visibility, investment, and expansion.

Perhaps his most memorable message resonated deeply throughout the room. Bobbitt explained that when a grandparent is attacked or harmed, the impact extends beyond race or ethnicity because today’s families and communities are increasingly multicultural and interconnected.

“We are not going to see our grandparents as just Latino, Asian, Caucasian, or African American,” he shared in essence. “We are going to see them simply as our grandparents.”

Those words reflected the heart of the symposium. Hate may target one group, but pain and loss are felt by everyone. Likewise, healing and progress are shared responsibilities.

For more information about the Stop The Hate Program visit the website: https://www.oaklandchinatownchamber.org/stop-the-hate (or) https://oaklandpic.or

Continue Reading

Activism

Six Months in, Probate Reform Coalition Marks Progress in Protecting Elders From Financial Abuse

Despite the cited obstacles, NPRC has made some promising inroads towards their mission.  NPRC has identified that nationwide the Attorneys General must be engaged and encouraged to implement oversight, protection and enforcement of the law; members find support from each other as they advocate for redress via “letters of compassion” sent to judges, nursing facilities and law enforcement agencies and members are instructed on their rights, how to take constructive action to protect those rights through access to resources that allow them to intelligently represent themselves in court.

Published

on

NPRC member Stewart E. Handte, a former Mineral County, Nevada, Sheriff and 27-year veteran of police work, currently wears an ankle monitor after he was arrested on kidnapping charges for helping his friend, Roger Hilligus, remove Hilligus’ mother, Susan Hilligus, from a nursing facility after finding her bruised and neglected. NPRC has submitted a “Letter of Compassion” for both Handte and Hilligus requesting that charges be dropped. Courtesy photo.
NPRC member Stewart E. Handte, a former Mineral County, Nevada, Sheriff and 27-year veteran of police work, currently wears an ankle monitor after he was arrested on kidnapping charges for helping his friend, Roger Hilligus, remove Hilligus’ mother, Susan Hilligus, from a nursing facility after finding her bruised and neglected. NPRC has submitted a “Letter of Compassion” for both Handte and Hilligus requesting that charges be dropped. Courtesy photo.

By Tanya Dennis

The National Probate Reform Coalition, a loose-knit national coalition of advocates, victims, and families dedicated to protecting elder rights, especially within the probate court system, was formed by the Post Newspaper Group (PNG) after more than a decade of reporting on the mistreatment of elders and the plunder of their estates.

In response, PNG Publisher Paul Cobb set in motion a series of monthly town halls to address the problem and propose workable solutions, designating it a “year of action.”

At six months, the coalition has attracted families, advocates, and experts across the nation whose strategies have proven effective in their respective states, and who are moving forward collectively with the mission of engaging judicial, legislative, and enforcement agencies to ensure elders are not exploited or abused.

“The issue of elder abuse is multi-layered”, says NPRC planning committee member Venus Gist.  “Elders are our most vulnerable population, next to children, and they are easily exploited by strangers, their own family members, and the judicial system designed to protect them.”

Since January, NPRC has, via monthly virtual meetings held on the first Thursday of each month, clearly defined the issues and formulated workable solutions that can be implemented nationwide.

“There are amazing laws on the books that protect elders and their assets,” said NPRC member Zakiya Jendayi. “The problem is they are ignored, and that lack of oversight has led to systemic abuse in the Probate Court system, not just in Alameda County, but nationwide.

“The scary part is the collusion and wall of silence NPRC has encountered when reaching out to the Judicial Council, legislators, and the State Bar for assistance.  It’s so obvious that one hand is washing the other, that they’re protecting each other, that it’s difficult to initiate any type of meaningful reform much less dialogue.”

Despite the cited obstacles, NPRC has made some promising inroads towards their mission.  NPRC has identified that nationwide the Attorneys General must be engaged and encouraged to implement oversight, protection and enforcement of the law; members find support from each other as they advocate for redress via “letters of compassion” sent to judges, nursing facilities and law enforcement agencies and members are instructed on their rights, how to take constructive action to protect those rights through access to resources that allow them to intelligently represent themselves in court.

Stacy Drake, a Texas member, says, “I’ve been looking for help for over 10 years with my situation, and I finally found it within the NPRC coalition.  God answered my prayers.”

Broadening its reach within Alameda County, NPRC has invited Oakland Mayor Barbara Lee to assist with outreach, education, and resolution.

“We hope to host an elder abuse/elder protection symposium annually, if not twice a year, to let our elders know that Alameda County and the City of Oakland are a safe place, a place where in their golden years they have no worries regarding exploitation and abuse,” said Cobb. “Society is defined by how the care for its children and elders.”

Continue Reading

Bay Area

A Long Time Coming: School District Kicks Off Massive $97 Million Renovation of West Oakland’s McClymonds High School

The extensive project will involve the full modernization of the campus, including essential upgrades to building systems such as plumbing replacement (with lead abatement), seismic improvements, and modernization of heating, electrical, ventilation, and air conditioning systems. Indoor spaces will be updated with new flooring, wall treatments, and upgrades to classrooms, labs, shops, and sports locker rooms.

Published

on

Renderings of McClymond High School renovation. Courtesy image.
Renderings of McClymond High School renovation. Courtesy image.

‘We gather on sacred ground,’ said OUSD Supt. Denise Saddler

By Post Staff

After being stalled for many years, the massive $97 million renovation of McClymonds High School is finally breaking ground under the leadership of the district’s new superintendent, Dr. Denise Saddler, and backed by the unrelenting efforts of the school’s parents, students, school board members, community, and alumni.

The Oakland Unified School District (OUSD) held the groundbreaking ceremony on June 12 to kick off the three-year modernization project for McClymonds, a historic center of African American culture and educational opportunity in Oakland, located at 2607 Myrtle St. in West Oakland.

The overhaul will include seismic and environmental upgrades, a new turf field, and modernized campus facilities. The comprehensive transformation is financed by Measure Y, a $735 million general obligation bond approved by Oakland voters to renovate and upgrade aging school sites.

This renovation is considered a milestone for the West Oakland campus, which has operated in the same building since 1938 and has been in dire need of structural and plumbing safety remediation for years.

Speaking at the event, Supt. Denise Saddler said,

“We gather on sacred ground… that has shaped generations of Oakland leaders, scholars, artists, activists, entrepreneurs, educators like Mr. Herman Brown – one of our top math teachers. I also want to say it’s the historic home of the mighty Warriors (athletic teams). It’s a historic home of so many people.”

“This was, for Black people, our high school,” she continued “For more than a century, McClymonds has stood as a beacon of excellence in West Oakland and beyond. It’s not simply a school building; it’s a symbol of resilience, pride, community, and possibility.”

The superintendent said the legacy of McClymonds includes legendary alumni such as NBA player-coach Bill Russell, whose excellence transformed the game of basketball and whose courage helped transform the nation.

The school’s legacy also includes MLB players Frank ‘Judge’ Robinson and Curt Flood, basketball player Paul Silas and civic leaders including Lionel Wilson, a Superior Court judge and Oakland’s first African American mayor.

She emphasized that the groundbreaking was not only about honoring the past, but also about investing in the future.

“(It) represents Oakland’s commitment to the young people of West Oakland. It sends a powerful message that our students deserve facilities that match their brilliance, their talent and their dreams. “

The extensive project will involve the full modernization of the campus, including essential upgrades to building systems such as plumbing replacement (with lead abatement), seismic improvements, and modernization of heating, electrical, ventilation, and air conditioning systems. Indoor spaces will be updated with new flooring, wall treatments, and upgrades to classrooms, labs, shops, and sports locker rooms.

The cafeteria also will be reconfigured, and outdoor areas will feature a new grandstand, track and field upgrades, accessible field bathrooms and concessions, and updates to the plaza, garden, and outdoor gathering areas.

Mayor Barbara Lee, who attended the event, thanked Oakland voters for passing the Measure Y bond that is paying for the school’s renovation.

Renderings of McClymond High School renovation. Courtesy image.

Renderings of McClymond High School renovation. Courtesy image.

“It’s a good day – It’s a good news day,” she said. “The voters who (approved) Measure Y care about our young people. Today, we have the opportunity on this historic day to say, well done. Thank you to the voters for the facilities our community, our students, our teachers deserve.”

School Board member VanCedric Williams, whose district includes McClymonds, said that OUSD passed repeated school bond measures for decades, promising to renovate the school, but it did not happen.

“I just want to thank all the community (who) put pressure on the district to do right, to hold school board members accountable, and to really say, ‘We’re not going to take anything less than a renovation.’”

“When I first met Dr. Saddler, she said, ‘I have a commitment to McClymonds – I’m going to make it happen.’ And she has done something in one year that has not been done in 20 years. So, I have the belief that we’re going to get it done.”

Rising senior LaTanya Nolen, praised the school for the opportunities she has received and for the dedication of its staff.

“Every student here is treated like they matter and given opportunities to grow and build onto themselves,” she said. “We’ve gotten to do things like sports, field trips, college and career excursions, networking, and more. Our futures are taken seriously, and the people around us are always pushing us so that we are prepared for it.”

Parent Brejea Colthirst said, “Thank you to everyone who had a part in this, who helped make this possible. Together, we are building something special.”

Brian McGhee, popular McClymonds staff member and alumni, pledged to build on the strength of McClymonds’ traditions. “Mack is back.  We’re going to up the enrollment with this new school. We’re going to continue to know every student’s name who comes through this school. My job as a community manager is going to continue to provide resources for our families and our students, and continue to communicate with our parents, which is huge.”

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.