Charles Schwab

Tell Charles Schwab: Take your hands off our Social Security.

Under pressure, investment groups Edward Jones, Waddell & Reed and Financial Services Forum have pulled out of lobbying outfits pushing Social Security privatization. Now it’s Charles Schwab’s turn.

Charles Schwab still is a leading member of the pro-privatization Alliance for Worker Retirement Security—and also has funded the Cato Institute, the think tank that has been the godfather of the scheme to privatize Social Security. Privatization will mean huge benefit cuts for working families—but may mean millions of new customers for Charles Schwab. Schwab has claimed publicly it isn't supporting "any Social Security proposal." (The Wall Street Journal, Feb. 11, 2005.) 

Send a letter to demand Schwab immediately cease its support for Social Security privatization.

  • Step down from the AWRS.
  • Stop all financial contributions to pro-privatization organizations.
  • Take leadership in industry groups that Schwab is part of to stop supporting privatization.

Sample Letter for Campaign

Subject: Charles Schwab: Take Your Hands Off Our Social Security.

Dear [ Decision Maker ] ,

I am writing to protest Charles Schwab's support for Social Security privatization. Schwab joined the Alliance for Worker Retirement Security (AWRS), the leading business-backed lobby group trying to privatize Social Security. Schwab also has funded the Cato Institute and Schwab officials have publicly backed the concept of privatization.

Privatization will mean huge benefit cuts and dangerous levels of new government borrowing. I urge you to immediately withdraw all support from groups pushing to privatize Social Security, including AWRS. I also urge you to take leadership in industry groups such as the Securities Industry Association to withdraw support from privatization.

Social Security should be strengthened so that it remains a guaranteed protection for Americans in retirement and when facing disability or the death of a loved one. As an investment adviser to average Americans, Charles Schwab should not be pushing a scheme that unravels these protections.

Sincerely,

Campaign Launched:
March 15, 2005


Background Information

Don't Privatize Social Security—Strengthen It

With private pensions and public employee retirement plans under attack, working families need more retirement security, not less. But privatizing Social Security would make retirement less secure by cutting guaranteed benefits by 40 percent for even for those who do not choose privatized accounts.

  • They say:
    The program is voluntary.

    THE FACT IS:
    The program is not voluntary-your retirement benefits are cut by at least 40 percent, even if you do not choose a private account.

  • They say:
    You'll make more money with private investments.

    THE FACT IS:
    The government will take back 70 cents in your Social Security benefits for every dollar in your account when you retire-on top of the 40 percent cut in your guaranteed retirement benefits.

  • They say:
    You'll get to personally direct your retirement investments.

    THE FACT IS:
    You don't control your own money-politicians will pick Wall Street firms to control your investment accounts, a process corrupted by politics.

  • They say:
    You'll be able to pass on your retirement investments to your heirs.

    THE FACT IS:
    For most retirees, there will be little or nothing left to pass on because most Social Security investments cannot be passed on to heirs.

To find out more go to: http://www.aflcio.org/socialsecurity.