Tell Schwab Board: Stop Social Security Double Talk

The investment firm Charles Schwab is a member of the major proponent of privatizing Social Security: the Alliance for Worker Retirement Security. The firm 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.

CEO Chuck Schwab has claimed publicly: "Our corporation does not take positions on political issues." (San Francisco Chronicle, 5/1/05) 

That’s double talk.

Send a letter to demand the Schwab board immediately stop Chuck Schwab’s Social Security double talk.

Sample Letter for Campaign

Subject: End Schwab's Social Security Double Talk

Dear [ Decision Maker ] ,

As a member of the Schwab board of directors, your key role is to oversee top management. I urge you to immediately stop Chuck Schwab's Social Security double talk at a time when the company's stock price languishes and its customer base is eroding.

CEO Chuck Schwab is using his name and the prestige of the Schwab investment firm to promote a highly controversial public policy position. Social Security double talk undermines the trust of investors and clients in the company.

The Charles Schwab Corp. joined the Alliance for Worker Retirement Security, 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. Social Security should be strengthened so 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, the Schwab Corp. should not be pushing a scheme that unravels these protections.

Sincerely,

Campaign Launched:
June 07, 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.