Today I held a hearing on the serious impact on retirement security from the worst financial crisis our country has faced since the Great Depression. The hearing is one step in a series of investigations Congress promised to conduct into the causes and impacts of this crisis and what we should do in response.

You can view the archive webcast on the Education and Labor Committee website.

As you know President Bush asked Congress to approve a “blank check” plan to rescue the economy. We rejected his plan but not the need to act quickly to help people. So we approved a Rescue Plan that has strong taxpayer protections and tough accountability.

*** *** ***
Retirement accounts have lost $2 trillion

By JULIE HIRSCHFELD DAVIS

WASHINGTON (AP) — Americans' retirement plans have lost as much as $2 trillion in the past 15 months, Congress' top budget analyst estimated Tuesday.

The upheaval that has engulfed the financial industry and sent the stock market plummeting is devastating workers' savings, forcing people to hold off on major purchases and consider delaying their retirement, said Peter Orszag, the head of the Congressional Budget Office.

As Congress investigates the causes and effects of the financial meltdown, the House Education and Labor Committee was hearing from retirement savings and budget analysts on how the housing, credit and other financial troubles have battered pensions and other retirement funds, which are among the most common forms of savings in the United States.

"Unlike Wall Street executives, America's families don't have a golden parachute to fall back on," said Rep. George Miller, D-Calif., the panel chairman. "It's clear that their retirement security may be one of the greatest casualties of this financial crisis."

More than half the people surveyed in an Associated Press-GfK poll taken Sept. 27-30 said they worry they will have to work longer because the value of their retirement savings has declined.

Orszag indicated the fear is well-founded. Public and private pension funds and employees' private retirement savings accounts — like 401(k)'s — have lost some 20 percent overall since mid-2007, he estimated. Private retirement plans may have suffered slightly more because those holdings are more heavily skewed toward stocks, Orszag added.

"Some people will delay their retirement. In particular, those on the verge of retirement may decide they can no longer afford to retire and will continue working," Orszag said.

A new AARP study found that because of the economic downturn, one in five workers 45 and older has stopped putting money into a 401(k), IRA or other retirement savings account during the past year, and nearly one in four has increased the number of hours he works.

Below is a press release from the Mt. Diablo Peace Center announcing an upcoming event involving Rep. George Miller and Rep. Keith Ellison.

Town Hall Meeting with Congressman Keith Ellison (D - MN 5)
Congressman George Miller (D-CA 7) will introduce Congressman Ellison

When: Saturday, October 18 at 11:00 A.M.
Where: Mt. Diablo Unitarian Universalist Church,
55 Eckley Lane, Walnut Creek 94596

Co-Sponsors: Northern California Peace Alliance,
Social Action Committee of Mt. Diablo Unitarian Universalist Church, Lamorinda Peace and Justice Group and Rossmoor Grandparents for Peace

Congressman Ellison will address the current situations of war and peace around the world and social and economic injustice in our country, including the economy, credit card interest rates and health care. Congressman Ellison, a co-sponsor of the Department of Peace Bill (HR 808), is a lively speaker who has visited the Peace Institute in Norway in his search to understand peace in our world. The Congressman will answer your questions as part of the program.

Congressman Keith Ellison represents the Fifth Congressional District of Minnesota in the United States House of Representatives since taking office on January 4, 2007. The Fifth Congressional District is the most vibrant and ethnically diverse Congressional district in Minnesota with over eighty languages spoken throughout the district that includes the City of Minneapolis and several surrounding suburbs.

Ellison's election to the Congress made both Minnesota and U.S. history. Keith is the first African American elected to the Congress from Minnesota, as well as the first Muslim American to be elected to the U.S. Congress.
Suggested donation: $10-$15 (no one turned away for lack of funds); wheelchair accessible.

For more information: Mt. Diablo Peace & Justice Center www.mtdpc.org