Tell Charles Schwab and Wachovia to Back Off Our Social Security

The Charles Schwab Corp. and Wachovia Corp. are leading corporate supporters of Social Security privatization. Privatizing Social Security would create risky private accounts invested in the stock market that could cut the program’s guaranteed benefits by up to 40 percent, explode the federal debt and open Social Security up to political corruption. But such investment firms as Schwab and Wachovia could reap billions in fees and commissions for managing privatized Social Security accounts.

Working families count on Social Security’s guaranteed benefits—and we should be able to count on our investment managers to act in our best interest and to steer clear of conflicts of interest. Please take a moment now to send the following message to Charles Schwab, CEO of Charles Schwab Corp., and G. Kennedy Thompson, Wachovia’s CEO. Tell them to drop their support for privatizing Social Security.

Sample Letter for Campaign

Subject: Back Off Our Social Security

Dear [ Decision Maker ] ,

Working families such as mine rely on Social Security's guaranteed benefits. I strongly oppose proposals to cut Social Security benefits and explode the federal debt by creating risky, privatized Social Security accounts.

These privatized accounts could be a windfall for companies such as yours--but they would devastate families such as mine. As a company that is supposed to watch out for working families' finances, you should not support Social Security privatization--or fund the lobbying groups that support it.

I urge you to join the investment groups that already have dropped out of the pro-privatization lobbying coalitions, to stop any financial support you are giving them and to withdraw any other support you are providing for Social Security privatization.

Sincerely,

Campaign Launched:
March 31, 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 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: www.aflcio.org/socialsecurity.