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Tag: retirement and retirees

  • GM settles strike at Canadian plants | CNN Business

    GM settles strike at Canadian plants | CNN Business

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    New York
    CNN
     — 

    A strike at General Motors’ Canadian plants is over less than a day after it started, according Unifor, the union that represents more than 4,000 autoworkers at the company.

    The strike had begun 11:59 pm Monday when Unifor said GM had refused to agree to a deal similar to the one the union previously reached with Ford. That kind of deal is known as a pattern agreement.

    The union said the company quickly gave in to union demands once the strike started.

    “When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern,” said Unifor National President Lana Payne. “The solidarity of our members has led to a comprehensive tentative agreement that follows the pattern set at Ford to the letter.”

    The union said strike actions are on hold to allow the membership to vote on the tentative agreement. The strike could resume if the rank-and-file members fail to ratify the deal.

    But it’s uncertain whether it will win approval of membership. Only 54% of Unifor members at Ford voted in favor of the deal.

    The Unifor strike occurred while GM as well as rivals Ford and Stellantis were already dealing with strikes by the United Auto Workers union. That strike had started September 15 against targeted facilities of each company. More than 25,000 UAW members are now on strike at the three companies, with nearly 10,000 of those at GM.

    “This record agreement, subject to member ratification, recognizes the many contributions of our represented team members with significant increases in wages, benefits and job security while building on GM’s historic investments in Canadian manufacturing,” said GM’s statement.

    Details of the Unifor deal were not immediately available. But the deal with Ford included a wage increase of 10% in the first year of the agreement, followed by a 2% and 3% increase over the next two years of the contract. It also restored the cost-of-living adjustments (COLA) to protect workers from rising prices.

    The Ford agreement also returned to a pension plan — rather than just 401(k)-style retirement accounts — for Unifor members hired at Ford in recent years. And it converted temporary staff who work full-time shifts into permanent employees.

    Autoworkers in both Canada and the United States used to all have COLA clauses in their contracts as well as traditional pension plans that pay retirees a set amount every month as long as they live. But the automakers got unions on both sides of the border to give up the COLA for all members and traditional pensions for new hires when the companies were in financial distress in 2007 through 2009.

    Restoring those concessions have been a major negotiation demand of both Unifor and the UAW.

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  • Call to arms: Thousands of Revolutionary War stories are waiting to be told. A new project asks the public to help uncover them | CNN

    Call to arms: Thousands of Revolutionary War stories are waiting to be told. A new project asks the public to help uncover them | CNN

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    CNN
     — 

    The National Park Service and US National Archives and Records Administration are calling on Americans to help reveal the untold stories of the United States’ first veterans to commemorate the upcoming 250th anniversary of American independence.

    The Revolutionary War Pension Files Transcription Project aims to transcribe approximately 2.3 million original documents that correspond with more than 83,000 individual soldiers. The information spans 150 years, from wartime records to 20th century inquiries made by veterans’ descendants.

    The goal of the project is to unearth personal stories from the battlefield and home front, using information included in federal pension applications from Revolutionary War veterans and their widows, according to the National Park Service. And they need the public’s help to do it.

    “We’re asking the public in the next three years, as we lead up to the 250th anniversary of the United States, to help us transcribe the pension files to be able to unlock these stories of our first veterans,” Suzanne Isaacs, community manager for the National Archives Catalog, said.

    While the Continental Army issued signed discharge papers, veterans who served in the militia had to give oral testimonies and provide witnesses to corroborate their stories. As a result, thousands of court records have yet to be digitally transcribed in the National Archives Catalog.

    These verbal attestations were an opportunity for veterans to tell their stories in vivid detail. When pension acts were put in place in the early 19th century, many veterans were elderly and illiterate, so they gave detailed accounts in hopes of recording their life stories.

    However, relying on oral testimonies also allowed for embellished tales that were difficult to disprove.

    For example, William Shoemaker testified that he spent 18 months as a prisoner of war to receive pension pay. Historian Todd Braisted discovered, more than two centuries later, that Shoemaker joined a loyalist unit and was captive for only two months.

    When requirements for pension pay loosened in the 1830s, widows who were married before the conclusion of the war became eligible to apply. To receive funds, widows had to give oral testimonies about their husbands’ service and provide proof of their marriage.

    That means the National Archives files also include documents such as marriage licenses, wartime letters and soldiers’ diaries.

    Judith Lines applied for widow’s pension in 1837 using one of the rarest kinds of documents – a correspondence from her husband written during his service under Gen. George Washington. John Lines’ 1781 note is the only known preserved letter penned by a Black Continental soldier.

    With the help of volunteer archivists, these rare, firsthand stories from the Revolutionary War will be more accessible to the public and archived in the National Archives. Volunteers can register for a free account with the National Archives Catalog. No prior experience is required.

    “This project is a way to help make accessible the records of our first veterans, the veterans of the Revolutionary War,” Isaacs said.

    The veterans and their families might never have imagined that their accounts of the war and its effects on their lives could be so readily available to the nation. The documents included in this project offer a personal perspective that, before now, was largely unknown.

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  • Goodbye child care centers, hello elderly homes: South Korea prepares for aging population | CNN

    Goodbye child care centers, hello elderly homes: South Korea prepares for aging population | CNN

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    Seoul, South Korea
    CNN
     — 

    South Korea is getting older – and its care facilities are changing to match.

    The number of child care facilities in the country has shrunk by almost a quarter in just a few years, reflecting authorities’ unsuccessful campaign to encourage couples to have more babies.

    In 2017, there were more than 40,000 child care facilities, according to new government figures released Friday – by the end of last year, that number had fallen to roughly 30,900.

    Meanwhile, as the population rapidly ages, the number of elderly facilities has boomed from 76,000 in 2017 to 89,643 in 2022, according to the country’s health and welfare ministry.

    Elderly facilities include senior care homes, specialized hospitals, and welfare agencies that help the elderly navigate social services or protections. Meanwhile, the child care facilities listed include public services as well as private and corporate ones.

    The shift illustrates a years-long problem South Korea has thus far failed to reverse. It has both one of the world’s fastest aging populations and the world’s lowest birth rate, which has been falling continuously since 2015 despite authorities offering financial incentives and housing subsidies for couples with more babies.

    Experts attribute this low birth rate to various factors, including demanding work cultures, stagnating wages, rising costs of living, the financial burden of raising children, changing attitudes toward marriage and gender equality, and rising disillusionment among younger generations.

    By the late 2000s, the government had begun warning that policy measures were needed to encourage families to grow. Last September, South Korean President Yoon Suk Yeol admitted that more than $200 billion has been spent trying to boost the population over the past 16 years.

    But so far nothing has worked – and the effects have been increasingly visible in the social fabric and day-to-day life.

    Many elementary, middle and high schools are closing around the country due to a lack of school-age children, according to Korean news agency Yonhap, citing the education ministry. Figures from the country’s official statistics body show the overall number of middle and high schools have remained stagnant for years, only rising by a few dozen since 2015.

    In Daejeon, south of Seoul, one such abandoned school has become a popular spot for photographers and urban explorers; images show eerily empty hallways and a school yard overgrown by wild grass.

    A photographer outside an abandoned school near Daejeon, South Korea, on March 22, 2014.

    Similar crises have been seen in other East Asian countries with falling birth rates. One village in Japan went 25 years without recording a single birth. The arrival of a baby in 2016 was heralded as a miracle, with elderly well-wishers hobbling to the infant’s house to hold him.

    Meanwhile, South Korea’s expanding elderly population has meant an explosion in demand for senior services, placing strain on a system scrambling to keep up.

    South Korea has the highest elderly poverty rate among the OECD nations (Organisation for Economic Co-operation and Development), with more than 40% of people over 65 years old facing “relative poverty,” defined by the OECD as having income lower than 50% of median household disposable income.

    “In Korea, the pension system is still maturing, and current generations still have very low pensions,” the OECD wrote in a 2021 report.

    Experts point to other factors such as global economic trends, the breakdown of old social structures that saw children looking after their parents, and insufficient government support for those struggling financially.

    That means a number of homeless elderly people – part of a generation that helped rebuild the country after the Korean War – having to seek assistance from shelters and soup kitchens.

    The rapid rise in elderly facilities in recent years may help alleviate some of these problems. But longer-term concerns remain about the future of Korea’s economy, as the number of young workers – who are crucial in propping up the health care and pension systems – slowly dwindle.

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  • The company supplying water to millions of Londoners is in deep trouble | CNN Business

    The company supplying water to millions of Londoners is in deep trouble | CNN Business

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    London
    CNN
     — 

    Britain’s biggest water supplier said Wednesday it needed to raise more cash from investors, as UK media reported the government was preparing contingency plans to rescue the company.

    Thames Water provides drinking water and waste water services to 15 million customers in London and the southeast of England. The utility, which counts one of Canada’s largest public pension funds among its top investors, has around £14 billion ($17.5 billion) of debt on its balance sheet.

    News that it needs more money came just a day after CEO Sarah Bentley resigned with immediate effect after three years in the role. She was in the second year of an eight-year turnaround plan to address aging infrastructure, tackle leakage and reduce pollution in rivers, a legacy of underinvestment.

    Thames Water received £500 million ($635 million) from shareholders in March, but said Wednesday it would need more.

    The firm “is continuing to work constructively with its shareholders in relation to the equity funding expected to be required to support Thames Water’s turnaround and investment plans,” it added.

    The company said it was keeping the water industry regulator Ofwat “fully informed” of its progress and added that it had a “strong liquidity position,” including £4.4 billion ($5.6 billion) of cash.

    Ofwat said it was in “ongoing discussions” with Thames Water “on the need for a robust and credible plan to turn the business around.”

    “We will continue to focus on protecting customers’ interests,” it added.

    Government ministers, including representatives from the UK Treasury and the environment department, Defra, are holding emergency talks with Ofwat over Thames Water’s future, according to UK media reports.

    One possibility would be to place the company into a special administration regime that effectively takes the firm into temporary public ownership. Sky News was first to report the discussions.

    A government spokesperson told CNN: “This is a matter for the company and its shareholders. We prepare for a range of scenarios across our regulated industries — including water — as any responsible government would.”

    The spokesperson added that the UK water sector “as a whole is financially resilient.”

    Thames Water says about 24% of the water it supplies to customers is lost through leakage.

    The company’s single biggest shareholder is the Ontario Municipal Employees Retirement System, which holds a stake of around 32%. The Universities Superannuation Scheme, a pension fund for the academic staff of UK universities, owns nearly 20%.

    Other large investors include the Chinese and Abu Dhabi sovereign wealth funds, as well as British Columbia Investment Management Corporation, which invests on behalf of public sector workers.

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  • San Francisco announces inaugural Drag Laureate, the first position of its kind in the country | CNN

    San Francisco announces inaugural Drag Laureate, the first position of its kind in the country | CNN

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    San Francisco
    CNN
     — 

    D’Arcy Drollinger, a veteran of San Francisco’s vibrant drag scene, has been named the city’s first-ever Drag Laureate and will become an ambassador for San Francisco’s drag and LGBTQ+ community for an 18-month term, Mayor London Breed’s office announced Thursday.

    The position is the first of its kind in the country.

    “While drag culture is under attack in other parts of the country, in San Francisco we embrace and elevate the amazing drag performers who through their art and advocacy have contributed to our City’s history around civil rights and equality,” Breed said in a news release.

    Drollinger says she’s “proud to live in a city that is pioneering this position while other parts of the US and the world might not be supportive of Drag. This role will build bridges and create partnerships, while elevating and celebrating the Art of Drag.”

    Drag, according to Drollinger, is a way for many people who “aren’t allowed to sparkle in their real lives and as their true selves” to find refuge, she told CNN.

    Breed officially announced the creation of the Drag Laureate program in her June 2022 city budget, but the concept was first introduced in August 2020 in a report from San Francisco’s LGBTQ+ Cultural Heritage Task Force, a city-supported task force which reviewed community feedback on LGBTQ+ needs and concerns.

    Among other strategies, the task force recommended improving partnerships between city agencies and community organizations to expand creative programs for LGBTQ+ artists, including the “creation and funding of LGBTQ+ artist residency opportunities.”

    Finding spaces for queer creatives is an issue Drollinger understands intimately, as she opened the popular Oasis cabaret and nightclub in 2015 to provide a mid-size venue space for both local and touring drag performers. The survival and success of Oasis, through the pandemic, was vital for San Francisco’s drag community.

    “It’s important to have a space that’s for everyone, and Oasis has become a bit of a hub,” Drollinger said.

    Drag has a rich history in San Francisco, both as an appreciated art form and protest medium. Dating back to the 1950s, nightclubs such as the Black Cat and Finocchio’s drew both queer and straight audiences. The Compton Cafeteria riots in the city’s Tenderloin district became one of the first notable acts of queer protest in 1966 – three years before New York City’s famed Stonewall riots.

    Drollinger, a San Francisco native, has always been drawn to the city’s vibrant creative queer scene.

    “There’s something in the water. What I find exciting about San Francisco, it still remains that there is a willingness to experiment here that I haven’t found in many other places. People are willing to workshop things and play around with stuff purely for the joy of making art,” Drollinger said.

    She commends the city for spearheading efforts to promote drag, especially at a time when drag performance is under attack. By making the Drag Laureate an official city position, provided with a $55,000 stipend, Drollinger says San Francisco sends a message of the “legitimacy” of drag.

    “(San Francisco) is not asking for a volunteer. They’re asking us to be a diplomat and show up and be a part of the city.”

    D'Arcy Drollinger emcees during a drag show at Oasis nightclub Tuesday, May 16, 2023, in San Francisco.

    Before Per Sia, one of the Drag Laureate applicants, began dressing in drag, they fell in love with the art form as a photographer, capturing images of drag queens in South Central Los Angeles and San Francisco. They loved the extravagance and celebrity-like personas drag queens embodied but felt too shy and nervous to do drag themselves.

    The first time Per Sia dressed in drag was 16 years ago on a dare, to perform in San Francisco’s Castro District. The experience was revelatory and they haven’t looked back.

    “After I [performed], there was this sense of joy, this empowerment that I have never felt before, and I just fell in love with it,” Per Sia said.

    Socrates Parra, also known as Per Sia

    They balance drag performance with their second career as an arts educator. Per Sia, who jokes that they get to “teach the little kids” during the day and “perform in front of the big kids” at night, sees drag as a tool to educate people, on top of entertaining them.

    They combine these two careers as a regular for Drag Story Hour, a program where drag queens read stories to children to promote self-expression. They’ve read for San Francisco Public Library events and Oakland Pride, and Per Sia enjoys teaching children about “thinking outside of the box” through these story hours.

    “When you’re a little kid, it’s all about using your imagination, glittering everything and using all the colors, but at some point all of that gets taken away,” Per Sia said. “The benefit of drag is that you teach kids that there’s other ways of living.”

    Drag has always been a part of Drollinger’s life, but it was a slow process for her to embrace drag as her “work clothes” until she was in her 40s. She credits drag for helping her find her community and identity.

    “So many people that find drag, they find it when they aren’t allowed to sparkle in their real life, and their fabulousness is squashed,” Drollinger said. “Drag is a way to let so much of that out.”

    D'arcy Drollinger on the runway at Princess, a dance party and drag show at Oasis, Drollinger's cabaret and nightclub.

    The appointment of the Drag Laureate comes at a time when public drag performances and transgender expression are being threatened by conservative lawmakers across the country.

    “San Francisco’s commitment to inclusivity and the arts are the foundation for who we are as a city,” Breed wrote in a November statement. “Drag artists have helped pave the way for LGBTQ+ rights and representation across our city, and they are a part of what makes our city so special.” [[pending updated comment from mayor’s office TK]]

    Legislation banning or restricting drag has been gaining momentum in many Republican-led states. GOP lawmakers have claimed that drag performances expose children to sexual themes and imagery that are inappropriate, though many drag performances take place in age-restricted locations or require parental consent to attend.

    In March 2023, Tennessee became the first state to pass a law banning drag performances on public property and in locations where children can view the performances.

    Drollinger feels the effects of the national pushback against her work, even in a city known for progressive values. She’s spent more money on security at Oasis to ensure the audience and performers feel safe, she told CNN.

    “Creating these kinds of laws, demonizing trans people and the LGBTQ+ community, what they’re doing is inciting violence,” Drollinger said. “It’s terrifying. They want to erase my community and erase us.”

    Both Per Sia and Drollinger hope that by pioneering the Drag Laureate position, San Francisco will establish a model of tolerance for others to follow.

    “Important things happen here in San Francisco, and the world takes notice. Having this position for someone like me or anyone who applied is so special, but also, it’s showing the world that drag is powerful, and it deserves a place,” Per Sia said.

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  • France is still mad about a hike in the retirement age. But can the protests last? | CNN

    France is still mad about a hike in the retirement age. But can the protests last? | CNN

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    Paris
    CNN
     — 

    Clashes erupted in Paris on Monday marking May 1, a traditional day of union-led marches, in the wake of hugely unpopular changes to France’s pension system that were signed into law last month.

    One of France’s largest unions, the CGT, had called for “historic” protests following months of unrest and widespread strikes that saw transport grind to a halt and garbage mount in the streets of Paris.

    A CNN team on the ground reported chaotic scenes from the protests, having witnessed fireworks and other projectiles thrown at the police who answered with tear gas as they retreated and regrouped. Ahead of the protest the police had warned of a heightened risk of violence, with at least 30 people arrested as a result of Monday’s demonstrations, according to CNN affiliate BFMTV.

    Protesters were forcibly pulling detained civilians out of the police’s arms.

    One officer hit by a Molotov cocktail received treatment after sustaining what seemed to be “serious burns,” according to a spokesman with the Paris police.

    Policemen look on during Monday's demonstrations, with fierce clashes between security officials and protesters leading to dozens of arrests.

    France’s Constitutional Council, which plays a similar role to the US Supreme Court, in April approved the most controversial part of the reform – the raising of the retirement age from 62 to 64.

    Despite the decision, some of France’s powerful unions say they will fight on, with the question now whether this anger will plague the rest of Macron’s time in office or disappear from the streets.

    Here’s all you need to know about the pension reforms.

    For the French “it was never about the age of retirement,” said political scientist Dominique Moïsi, “but the balance between work and life.”

    Pensions reform has long been a thorny issue in France. In 1995, weeks-long mass protests forced the government of the day to abandon plans to reform public sector pensions. In 2010, millions took to the streets to oppose raising the retirement age by two years to 62 and in 2014 further reforms were met with widespread demonstrations.

    “Each time there is opposition from public opinion, then little by little the project passes and basically, public opinion is resigned to it,” Pascal Perrineau of Sciences Po university said.

    For many in France, the pensions system, as with social support more generally, is viewed as the bedrock of the state’s responsibilities and relationship with its citizens.

    The post-World War II social system enshrined rights to a state-funded pension and health care, which have been jealously guarded since, in a country where the state has long played a proactive role in ensuring a certain standard of living.

    How Macron pushed through these reforms – bypassing a parliamentary vote – inflamed tensions as much as their content, focusing anger on the president himself.

    “I don’t think in the history of the Fifth Republic, we have seen so much rage, so much hatred at our president. And I remember as a young student, I was in the streets of Paris in May ’68, and there was rejection of General de Gaulle but never that personal hatred,” Moïsi said.

    Macron is above all a business-minded president. Making France more business-friendly and government more efficient have been central to his mission.

    The young president made social reforms, especially of the pensions system, a flagship policy of his 2022 re-election.

    For Macron’s cabinet, the problem is money. The current system – relying on the working population to pay for a growing age group of retirees – is no longer fit for purpose, the government says.

    Labor minister Olivier Dussopt said that without immediate action the pensions deficit would reach more than $13 billion annually by 2027. Referencing opponents of the reforms, Dussopt told CNN affiliate BFMTV: “Do they imagine that if we pause the reforms, we will pause the deficit?”

    It is worth noting that the higher pension age will still keep France below the norm in Europe and in many other developed economies.

    State pensions in France are also more generous than elsewhere. At nearly 14% of GDP in 2018, the country’s spending on state pensions is larger than in most other countries, according to the Organization for Economic Cooperation and Development (OECD).

    The Constitutional Council’s decision means the reforms are going ahead.

    From September, the first retirees will have to wait an additional three months for their state pensions. With regular, incremental increases, by 2030 the retirement age will have reached 64.

    Protesters are unbowed. One told journalists in the immediate aftermath of the decision they would “fight until this reform is abandoned.”

    Between January and mid-April, despite sporadic violence, support for the protests grew by some 11%, figures from pollster IFOP in partnership with Fiducial/Sud Radio showed.

    Protestors stormed the headquarters of luxury giant  LVMH last month.

    In contrast, during the Yellow Vest protests, started in opposition to hikes in fuel prices, violence gradually soured public support. That these pensions protests continue to hold such popular goodwill is an ominous sign for Macron’s future plans.

    The size and violence of pensions protests spiked when Macron forced the legislation past the country’s lower legislative house without a vote. Since then, a determined minority has continued to protest – and a much smaller group to engage in violence. For now, with the law passed, momentum may have shifted away from mass street protests, even if flare-ups continue.

    But for an electorate the majority of whom did not pick Macron as their first choice, the May 1 marches will be a barometer of that anger, filmmaker David Dufresne, who directed a documentary on the Yellow Vest protests, told CNN.

    “Democracy by the street is back again,” he said.

    Macron is still not far into his second term, having been re-elected in 2022, and still has four years to serve as the country’s leader. Given French presidents serve fixed terms, his position is safe.

    Following the passage of the reforms, his government laid out a slew of policies promising additional funding for public services – nurse and teacher salaries included – tougher immigration measures and more environmental action in an effort to win back public support. But the horse may have already bolted for Macron’s efforts to woo back the public.

    Looking ahead to the next presidential election in 2027 – still far off on the political horizon – the anger Macron has stirred in the country’s streets doesn’t bode well for his party’s chances.

    While unions have led these protests, opposition politicians, political allies and even some in his own party have come out in support of the demonstrators.

    Macron has pressed on with his plans despite fierce opposition.

    In a re-run of the 2024 presidential run-off, with the far-right’s Marine Le Pen up against a candidate from Macron’s party, this popular anger may be enough to give pause to voters who supported Macron merely to stymie the far-right.

    “He failed to sell his logic and rationality,” Moïsi said, comparing Macron to Barack Obama, whose second term gave way to the presidency of Donald Trump.

    While Macron’s reforming crusade continues, the pensions controversy could ultimately force him to negotiate more, Perrineau warns – though he notes the French president is not known for compromise.

    His tendency to be “a little imperious, a little impatient” can make political negotiations harder, Perrineau said.

    That, he adds, is “perhaps the limit of Macronism.”

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  • Today is Tax Day. Here’s what you need to know if you haven’t filed your return yet — and even if you have | CNN Business

    Today is Tax Day. Here’s what you need to know if you haven’t filed your return yet — and even if you have | CNN Business

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    Editor’s Note: This is an updated version of a story that originally ran on April 14, 2023.


    New York
    CNN
     — 

    It’s April 18, the official deadline to file your federal and state income tax returns for 2022. (It is also, apparently, National Animal Crackers Day for those who celebrate.)

    Whether you have already filed your tax return or still need to, the good news is this tax filing season has gone much more smoothly than the past three, which were hurt by the pandemic.

    “This is the first tax season since 2019 where the IRS and the nation were on normal footing,” IRS Commissioner Danny Werfel said in a call with reporters.

    For instance, Werfel noted that since January, thanks to an infusion of some new funding after years of budget cuts, IRS employees have been able to answer 87% of calls from filers with questions. Last year, they answered fewer than 15%. And the wait times on those phone calls dropped to just 4 minutes this filing season from 27 minutes last filing season.

    The agency also added a roster of new online tools for filers, he added.

    Those online tools may be especially helpful today if you are scrambling to get your return in before midnight. Or, if you’ve come to the realization that you need to file for an extension. Either way, here are some key things to know:

    Not everyone has to file on April 18: If you live in a federally declared disaster area, have a business there — or have relevant tax documents stored by businesses in that area — it’s likely the IRS has already extended the filing and payment deadlines for you. Here is where you can find the specific extension dates for each disaster area.

    Thanks to many rounds of extreme weather in recent months, for instance, tax filers in most of California — which accounts for 10% to 15% of all federal filers — have already been granted an extension until Oct. 16 to file and to pay, according to an IRS spokesperson.

    If you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. But your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. This IRS publication offers more detail.

    Lastly, if you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. (Use this IRS tool to gauge whether you are required to file this year.) You also are likely eligible to use IRS Free File (intended for those with adjusted gross income of $73,000 or less) so it won’t cost you to submit a return.

    Your paycheck may not be your only source of income: If you had one full-time job you may think that is the only income you made and have to report. But that’s not necessarily so.

    Other potentially taxable and reportable income sources include:

    • Interest on your savings
    • Investment income (e.g., dividends and capital gains)
    • Pay for part-time or seasonal work, or a side hustle
    • Unemployment income
    • Social Security benefits or distribution from a retirement account
    • Tips
    • Gambling winnings
    • Income from a rental property you own

    Organize your tax documents: By now you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.).

    If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts — a document may have been sent to you electronically.

    Here are some of the tax forms you may have received:

    • W-2 from your wage or salaried jobs
    • 1099-B for capital gains and losses on your investments
    • 1099-DIV from your brokerage or company where you own stock for dividends or other distributions from their investments
    • 1099-INT for interest over $10 on your savings at a financial institution
    • 1099-NEC from your clients, if you worked as a contractor
    • 1099-K for payments for goods and services through third-party platforms like Venmo, CashApp or Etsy. The 1099-K is required if you made more than $20,000 in over 200 transactions during the year. (Next year the reporting threshold drops to $600.) But even if you didn’t get a 1099-K you still must report all the income that you made over third-party platforms in 2022.
    • 1099-Rs for distributions over $10 that you received for a pension, annuity, retirement account, profit-sharing plan or insurance contract
    • SSA-1099 or SSA-1042S for Social Security benefits received.

    “Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own,” according to the Illinois CPA Society.

    One very last-minute way to reduce your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will reduce your tax bill and augment your retirement savings.

    Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer.

    Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.

    What to do if you can’t file by April 18: If you’re not able to file on time, fill out Form 4868 electronically or on paper and send it in no later than today. You will be granted an automatic six-month extension to file.

    Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.

    So if you suspect you still owe tax — perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year — approximate how much more you owe and send that money to the IRS by the end of today.

    You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.

    Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will not have to file a Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its instructions.

    If you opt to electronically pay directly from your bank account, which is free, select “extension” and then “tax year 2022” when given the option.

    You can also pay by credit or debit card, but you will be charged a processing fee. Doing so, though, may become much more costly than just a fee if you charge your tax payment but don’t pay your credit card bill off in full every month, since you likely pay a high interest rate on outstanding balances.

    If you can’t pay what you owe in full, the IRS does have some payment plan options. But it might be smart to first consult with a certified public accountant or a tax preparer who is an enrolled agent to make sure you are making the best choice for your circumstance.

    If you still owe income taxes to your state, remember that you may need to go through a similar exercise of filing for an extension and making a payment to your state’s revenue department, Martin said.

    Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that can help you answer more than 50 basic questions pertaining to your individual circumstance on income, deductions, credits and other technical questions.

    If you’ve already filed your return, you’re probably glad to have it in the rear view mirror. But you may still have a few questions about what’s ahead.

    What about my refund? If you are due a refund, the IRS typically sends it within 21 days of receiving your return. When yours does arrive, it may be smaller than last year, even if your financial life didn’t change much. That’s because a number of Covid-related tax breaks expired.

    So far, the average refund paid was $2,878 for the week ending April 7, down from $3,175 at the same point in last year’s filing season.

    Will I be audited?: The reasons and methods for auditing a taxpayer can vary — and many audits result in “no change,” meaning you don’t end up owing anything more to the IRS. But one thing is common for the vast majority of US tax filers: Audit rates are exceedingly low.

    For filers reporting incomes between $50,000 and $200,000, only 0.1% of them were audited in 2020, according to the latest data from the IRS. Even for very high income filers, audit rates were quite low: Just 0.4% for those reporting income of between $1 million and $5 million; 0.7% for those with income between $5 million and $10 million; and 2.4% for returns with income over $10 million.

    Looking ahead, the IRS commissioner noted in a press call that the agency will be using money from the Inflation Reduction Act to bolster its compliance efforts to focus more on auditing high-income individuals — defined as making $400,000 or more. As for filers with income below that level, he said he did not anticipate any change in the likelihood they would be audited.

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  • Still haven’t filed your taxes? Here’s what you need to know | CNN Business

    Still haven’t filed your taxes? Here’s what you need to know | CNN Business

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    New York
    CNN
     — 

    So far this tax season, the IRS has received more than 90 million income tax returns for 2022.

    That means tens of millions of households have yet to file their returns. If yours is among them, here are some last-minute tax-filing tips to keep in mind as the Tuesday, April 18 deadline approaches.

    Not everyone has to file on April 18: If you live in a federally declared disaster area, have a business there — or have relevant tax documents stored by businesses in that area — it’s likely the IRS has already extended the filing and payment deadlines for you. Here is where you can find the specific extension dates for each disaster area.

    Thanks to many rounds of extreme weather in recent months, for instance, tax filers in most of California — which accounts for 10% to 15% of all federal filers — have already been granted an extension until Oct. 16 to file and to pay, according to an IRS spokesperson.

    If you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. But your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. This IRS publication offers more detail.

    Lastly, if you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. (Use this IRS tool to gauge whether you are required to file this year.) You also are likely eligible to use IRS Free File (intended for those with adjusted gross income of $73,000 or less) so it won’t cost you to submit a return.

    Your paycheck may not be your only source of income: If you had one full-time job you may think that is the only income you made and have to report. But that’s not necessarily so.

    Other potentially taxable and reportable income sources include:

    • Interest on your savings
    • Investment income (e.g., dividends and capital gains)
    • Pay for part-time or seasonal work, or a side hustle
    • Unemployment income
    • Social Security benefits or distribution from a retirement account
    • Tips
    • Gambling winnings
    • Income from a rental property you own

    Organize your tax documents: By now you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.).

    If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts — a document may have been sent to you electronically.

    Here are some of the tax forms you may have received:

    • W-2 from your wage or salaried jobs
    • 1099-B for capital gains and losses on your investments
    • 1099-DIV from your brokerage or company where you own stock for dividends or other distributions from their investments
    • 1099-INT for interest over $10 on your savings at a financial institution
    • 1099-NEC from your clients, if you worked as a contractor
    • 1099-K for payments for goods and services through third-party platforms like Venmo, CashApp or Etsy. The 1099-K is required if you made more than $20,000 in over 200 transactions during the year. (Next year the reporting threshold drops to $600.) But even if you didn’t get a 1099-K you still must report all the income that you made over third-party platforms in 2022.
    • 1099-Rs for distributions over $10 that you received for a pension, annuity, retirement account, profit-sharing plan or insurance contract
    • SSA-1099 or SSA-1042S for Social Security benefits received.

    “Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own,” according to the Illinois CPA Society.

    One very last-minute way to reduce your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will reduce your tax bill and augment your retirement savings.

    Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer.

    Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.

    What to do if you can’t file by April 18: If you’re not able to file by next Tuesday, fill out Form 4868 electronically or on paper and send it in by April 18. You will be granted an automatic six-month extension to file.

    Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.

    So if you suspect you still owe tax — perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year — approximate how much more you owe and send that money to the IRS by Tuesday.

    You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.

    Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will not have to file a Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its instructions.

    If you opt to electronically pay directly from your bank account, which is free, select “extension” and then “tax year 2022” when given the option.

    You can also pay by credit or debit card, but you will be charged a processing fee. Doing so, though, may become much more costly than just a fee if you charge your tax payment but don’t pay your credit card bill off in full every month, since you likely pay a high interest rate on outstanding balances.

    If you still owe income taxes to your state, remember that you may need to go through a similar exercise of filing for an extension and making a payment to your state’s revenue department, Martin said.

    Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that can help you answer more than 50 basic questions pertaining to your individual circumstance on income, deductions, credits and other technical questions.

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  • Oil prices surge after OPEC+ producers announce surprise cuts | CNN Business

    Oil prices surge after OPEC+ producers announce surprise cuts | CNN Business

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    Hong Kong/Atlanta
    CNN
     — 

    Oil prices spiked during Asian trade Monday after OPEC+ producers said they would cut production in a surprise move.

    Brent crude, the global benchmark, jumped 4.8% to $83.73 a barrel, while WTI, the US benchmark, rose 4.9% to $79.36.

    Rising oil prices could mean inflation remains higher for longer, adding pressure to a hot-button issue for consumers around the world.

    On Sunday, Saudi Arabia announced that it would start “a voluntary reduction” in its production of crude oil, alongside other members or allies of the Organization of the Petroleum Exporting Countries (OPEC).

    The cuts will start in May and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by Saudi state-run news agency SPA.

    The reductions are on top of those announced by OPEC+ in October, according to SPA.

    That month, oil producers had agreed to slash output by 2 million barrels a day, the largest cut since the start of the pandemic and equivalent to about 2% of global oil demand.

    Saudi Arabia now says it will cut oil production by another half a million barrels a day.

    Meanwhile, Iraq will slash production by 200,000 barrels per day, and the United Arab Emirates will decrease output by 144,000 barrels per day.

    Kuwait, Algeria and Oman will also lower production by 128,000, 48,000 and 40,000 barrels per day, respectively.

    In a Sunday note, Goldman Sachs analysts said the move was unexpected but “consistent with the new OPEC+ doctrine to act pre-emptively because they can without significant losses in market share.”

    The collective output cut by the nine members of OPEC+ totals 1.66 million barrels per day, said the analysts, who hiked their price forecast for Brent this year to $95 per barrel.

    Saudi Arabia’s energy ministry described its latest reduction as a precautionary measure aimed at supporting the stability of the oil markets, according to SPA.

    The White House pushed back on that notion — as well as the latest cuts by OPEC+.

    “We don’t think cuts are advisable at this moment given market uncertainty — and we’ve made that clear,” a spokesperson for the National Security Council said. “We’re focused on prices for American consumers, not barrels.”

    In October, OPEC+’s decision to cut production had already rankled the White House.

    US President Joe Biden pledged at the time that Saudi Arabia would suffer “consequences.” But so far, his administration appears to have back off on its vows to punish the Middle East kingdom.

    Russia, a member of OPEC+, also said Sunday that it would extend a voluntary reduction of 500,000 barrels per day until the end of 2023. The move was announced by Russian Deputy Prime Minister Alexander Novak, as cited by state-run news agency TASS.

    That decision was less surprising. Goldman analysts said they had forecast the cut would last into the second half of the year.

    — CNN’s Hanna Ziady and Arlette Saenz contributed to this report.

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  • Alabama men’s basketball star Brandon Miller declares for NBA Draft, per reports | CNN

    Alabama men’s basketball star Brandon Miller declares for NBA Draft, per reports | CNN

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    CNN
     — 

    University of Alabama men’s basketball star Brandon Miller has declared for the 2023 NBA Draft, according to ESPN’s Adrian Wojnarowski.

    The 20-year-old freshman forward Miller is considered one of the top prospects in this year’s draft class. Miller averaged 18.8 points and 8.2 rebounds per game in 37 games played.

    Miller said he thanks “God, my family, my fans and all the coaches at the University of Alabama,” in a statement to ESPN.

    Miller helped lead the Crimson Tide to a 31-6 record and the top overall seed in the men’s NCAA tournament. Miller, playing through an injury, struggled in the tournament and Alabama would go on to lose in the Sweet 16 to San Diego State.

    CNN has reached out to the Alabama athletic department for comment but did not immediately hear back.

    The embattled star did not miss a game for the Crimson Tide this season, despite a fatal shooting near campus which the school said he is a “cooperative witness” in.

    A law enforcement officer testified that another man had texted Miller to bring the man’s gun to the scene, where Jamea Jonae Harris was shot dead in January, according to CNN affiliate WBMA.

    Two men have been charged with murder.

    Miller has not been charged with any crime.

    The Alabama athletic department said in February that Miller is “not considered a suspect … only a cooperative witness” in the murder case.

    The 2023 NBA Draft is scheduled for June 22 at the Barclays Center in Brooklyn, New York.

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  • King Charles state visit to France postponed amid violent pension protests | CNN

    King Charles state visit to France postponed amid violent pension protests | CNN

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    CNN
     — 

    King Charles’s state visit to France has been postponed amid planned protests over the French government’s controversial pension reforms.

    Both France’s Élysée Palace and Buckingham Palace confirmed the trip had been shelved on Friday morning.

    The British monarch and Queen Consort were supposed to visit the country from Sunday through Wednesday, and they would have traveled to Paris and the southwestern city of Bordeaux. However a decision to postpone the visit was made after demonstrations turned violent in some areas, including Bordeaux, on Thursday.

    Clashes between groups of protesters angry over proposed pension reforms and police broke out after workers staged a national strike throughout Thursday, with flare-ups in Paris and regional capitals. In Bordeaux, demonstrators set fire to the entrance of the city hall during skirmishes with police, according to CNN affiliate BFMTV.

    The Élysée Palace said in a statement that the King’s state visit “will be rescheduled as soon as possible.”

    “In view of yesterday’s announcement of a new national day of action against pension reform on Tuesday, March 28 in France, the visit of King Charles III, originally scheduled for March 26-29 in our country, will be postponed,” the statement read.

    “This decision was taken by the French and British governments, after a telephone exchange between the President of the Republic and the King this morning, in order to be able to welcome His Majesty King Charles III in conditions that correspond to our friendly relationship,” it continued.

    A Buckingham Palace spokesperson confirmed the postponement to CNN, adding: “Their Majesties greatly look forward to the opportunity to visit France as soon as dates can be found.”

    A UK government spokesperson also confirmed the King would not travel to France next week, adding that “this decision was taken with the consent of all parties, after the President of France asked the British Government to postpone the visit.”

    Charles and Camilla were due to travel from France to Germany on Wednesday for a state visit. The second leg of the trip is still expected to go ahead.

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  • Opinion: Why France is fuming at Macron | CNN

    Opinion: Why France is fuming at Macron | CNN

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    Editor’s Note: Catherine Poisson is an associate professor of Romance Languages at Wesleyan University in Middletown, Connecticut. Her research has focused on literature and culture of France from the 19th century to the present. The views expressed in this article are her own. Read more opinion at CNN.



    CNN
     — 

    As a native of France who has lived in America for many years, I never fail to be shocked at the sight of older workers packing groceries at the supermarket. It suggests to me a deplorable lack of social supports that could allow aged people to enjoy a dignified retirement.

    While it’s true that some people choose to work past retirement, most of us in this country, at some point or the other, have seen elderly people hard at work in occupations that people many years younger would find taxing.

    And yet, many Americans somehow seem to be puzzled by the recent protests over retirement benefits that are roiling the country of my birth.

    For the past three months, a spasm of demonstrations has gripped France over moves by the government to raise the retirement age from 62 to 64. In recent days, French indignation led to a no-confidence vote that President Emmanuel Macron only narrowly survived. A new round of mass protests called by organized labor took place on Thursday — the ninth day of strikes since the bill was introduced in January.

    Schools are closed because teachers are on strike. Transportation, including France’s usually reliable train service, is suddenly erratic because of the work stoppages. On top of all this, Parisians have seen their city’s streets strewn with tons of trash, after sanitation workers launched a labor action in solidarity.

    I return to France for several weeks each year, but have lived in the United States some 30 years and know both countries well. One thing that seems clear to me is that the kind of upheaval playing out in the country of my birth would be almost unthinkable in America. Americans seem not to be able to understand the source of the boiling national rage felt by the French over the planned increase in the retirement age.

    The closest analogy in the United States to anything like what my compatriots are experiencing would be the decision four decades ago to raise the age at which Social Security benefits are doled out.

    And that’s exactly what happened: The US government announced in 1983 that it would gradually raise the age for collecting full Social Security retirement benefits from 65 to 67 over a 22-year period, beginning in 2000. Of course, older Americans care deeply about Social Security — and often cast their votes accordingly. Still, it’s hard to imagine such a change going over quite so easily in France.

    For the most part, the demonstrations in France haven’t awakened Americans’ sense of empathy or solidarity. Instead, it has elicited expressions of sheer befuddlement. What on earth, my friends and acquaintances here ask, do the French have to complain about?

    Life in France is not perfect. But French citizens have a generous health care system, which means workers pay next-to-nothing out of pocket for medical care. University education is nearly free. Unemployment benefits allow laid-off workers to sustain a reasonable quality of life while they look for their next jobs.

    Yes, French workers have all of that. It is, in short, part of their birthright as citizens of France.

    After World War II, both the retirement system and the National Health care system were introduced in France, and though there have been limitations over the last twenty years, social benefits still make it among the most envied countries in Europe in terms of its social programs.

    If Americans are baffled by the French willingness to fight to hold onto these hard-won benefits, it is in part because the two countries have very different ideas about what it means to be a worker. In the United States, work is an identity. You are what you do.

    For those of us raised in French culture, work refers to a finite period of life lasting roughly 40 years. And when that work is done, you are still young enough and fit enough to enjoy the best of what life has to offer. It’s the norm that retirement years — or decades actually — are spent traveling, caring for grandchildren or picking up new hobbies.

    It’s part of our social compact: The French work hard during their most productive years during which time they pay what most Americans would consider usuriously high taxes. But then comes the much anticipated “Troisieme Age” — the “third age.” It’s a concept French people grow up with and cling to fervently for their entire lives.

    The “first age” is childhood. During life’s “second age,” many of us are saddled with responsibilities of work and raising children. The third age however promises a good, healthy retirement free from want and worry — the kind of retirement many in the United States cannot even dream of. It is no wonder that people are willing to take to the streets to protect it.

    The ongoing protests are also seen as a pushback against Macron’s imperious governing style. Years ago, he earned the nickname “Jupiter” — after the king of the Roman gods — as he was derided by some for his highhanded approach to governing — imposing his will, in the eyes of his critics, as if he were a sovereign rather than elected.

    Macron says retirement reform is necessary because the system is near collapse. There’s some disagreement about that, however. The budget appears to be balanced for the next dozen years, although it’s true that falling birth rates and increasing longevity pose a problem that will have to be addressed.

    Still, there are less draconian ways to fix problems posed by a future retirement fund shortfall. For starters, Macron might reverse his move to abolish the wealth tax. He might also reconsider corporate tax breaks that have benefited big business handsomely.

    His administration’s use last week of a constitutional maneuver to bypass a vote in the National Assembly and raise the retirement age is an example of his imperial style. It’s an approach to governing that Macron has used multiple times, including when he passed a budget late last year. And as the protests wear on, there’s been another sign of government heavy-handedness: Macron now has resorted to the “requisition” of some striking workers — in short requiring them to return to their places of employment or risk losing their jobs.

    Such moves are, in my view, an admission of political impotence rather than strength. The president has failed to see politics as the art of persuasion and is instead ruling by fiat. The brutal police crackdown on demonstrators protesting pension reforms led to hundreds of arrests in recent days, another sign that he lacks political deftness. The unions meanwhile show no sign of backing down, and are continuing to organize massive protests urging workers to stand firm and remain off the job.

    So what’s next? Surely the French will continue to take to the streets, something they always do with great gusto. Beyond this, it’s hard to say how this upheaval ends.

    There’s no question that the French are slow to embrace change. I am and will always remain staunchly French, although after many years in the US, I can see that my compatriots need to show greater flexibility. They hold on too long to obsolete aspects of their cherished way of life. It’s time for the French to abandon their “c’est tout ou rien” (“all or nothing”) approach as we negotiate what French society will look like in the future.

    But then I read about the latest moves to raise the US retirement age to 70, and think that my protesting countrymen have a thing or two that they can teach workers in America when it comes to protecting the sanctity of their golden years.

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  • French airports, schools and oil refineries hit by national strike over pension age increase | CNN Business

    French airports, schools and oil refineries hit by national strike over pension age increase | CNN Business

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    Paris
    CNN
     — 

    French transport networks, oil refineries and schools were hit by widespread disruption Thursday as workers staged a national strike to protest an increase in the retirement age that was pushed through parliament without a vote.

    Though sporadic demonstrations had popped up in Paris and other cities after the French government forced the bill through last week, Thursday marked the first day of coordinated action since then. It is the ninth day of strikes since the bill was introduced in January.

    Only two out of 14 metro lines in Paris were operating a normal service. RER train services, which run in the city and its suburbs, were severely reduced and only half of high-speed TGV trains were working. The nationwide strike has also affected air traffic, with 30% of flights impacted at Paris Orly airport.

    Unionized workers blockaded a major oil refinery in Normandy and another one in Fos-sur-Mer in the south of France, according to a government spokesperson.

    “We are intervening in a targeted manner to unblock oil storage tanks that are blocked by demonstrators,” the minister of energy transition, Agnès Pannier-Runacherin, said in a statement.

    “If the strike is a fundamental constitutional right, blockading is not one… The police is mobilized in difficult conditions and has my full support.”

    The government renewed its requisition order requiring workers to go back to work at the two blockaded refineries, the government spokesperson said.

    The government’s plan to raise the retirement age for most workers by two years was opposed by huge numbers of people. But despite protests that drew more than a million people onto streets across the country, President Emmanuel Macron’s government did not back down. It rammed the legislation through the French National Assembly last week using a constitutional clause that allows the government to bypass a vote.

    The country’s generous pension system and early retirement have long been a point of pride since they were enacted after World War II. Under the new law, the retirement age for most workers will be 64, still one of the lowest in the industrialized world.

    As a result of the refinery strikes, kerosene stocks at Charles De Gaulle airport, which serves Paris, were “under pressure,” and those at Orly airport were being monitored, according to the civil aviation authority.

    Earlier in the day, around 70 protesters blocked terminal one at Charles de Gaulle airport, an airport spokesperson told CNN.

    About 20% of teachers in public education also took part in the strikes, according to France’s education ministry.

    A protester stands near burning garbage bins during a demonstration as part of protests against the pension reform, in Nantes, France, March 23, 2023.

    Macron and his government have defended the retirement reform as necessary to keep the pension system funded. Taxes on current workers pay for the benefits of retirees, and as people live longer — and more baby boomers retire — the system would otherwise eventually go bankrupt, though the threat is not immediate.

    When the proposal was unveiled in January, the government said the reforms were necessary to prevent a projected 13.5 billion ($14.7 billion) euro hole opening up in the pension system in 2030.

    During an interview with two of France’s main television networks Wednesday, Macron said the bill should be enacted by the end of this year. He also defended the decision to push through the reform as financially necessary, no matter how unpopular it was.

    “It’s in the greater interest of the country. Between opinion polls and the national interest, I chose the national interest,” Macron said.

    — CNN’s Joseph Ataman and Olesya Dmitracova contributed to this report.

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  • French workers may have to retire at 64 and many are in uproar. Here’s why | CNN

    French workers may have to retire at 64 and many are in uproar. Here’s why | CNN

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    Paris
    CNN
     — 

    Impromptu protests broke out in Paris and across several French cities Thursday evening following a move by the government to force through reforms of the pension system that will push up the retirement age from 62 to 64.

    While the proposed reforms of France’s cherished pensions system were already controversial, it was the manner in which the bill was approved – sidestepping a vote in the country’s lower house, where President Emmanuel Macron’s party crucially lacks an outright majority – that arguably sparked the most anger.

    And that fury is widespread in France.

    Figures from pollster IFOP show that 83% of young adults (18-24) and 78% of those aged over 35 found the government’s manner of passing the bill “unjustified.” Even among pro-Macron voters – those who voted for him in the first round of last year’s presidential election, before a runoff with his far-right adversary – a majority of 58% disagreed with how the law was passed, regardless of their thoughts about the reforms.

    Macron made social reforms, especially of the pensions system, a flagship policy of his 2022 re-election and it’s a subject he has championed for much of his time in office. However, Thursday’s move has so inflamed opposition across the political spectrum, that some are questioning the wisdom of his hunger for reforms.

    Prime Minister Elisabeth Borne conceded in an interview Thursday night with TF1 that the government initially aimed to avoid using Article 49.3 of the constitution to crowbar the reforms past the National Assembly. The “collective decision” to do so was taken at a meeting with the president, ministers and allied lawmakers mid-Thursday, she said.

    For Macron’s cabinet, the simple answer to the government’s commitment to reforms is money. The current system – relying on the working population to pay for a growing age group of retirees – is no longer fit for purpose, the government says.

    Labor minister Olivier Dussopt said that without immediate action the pensions deficit will reach more than $13 billion annually by 2027. Referencing opponents of the reforms, Dussopt told CNN affiliate BFMTV: “Do they imagine that if we pause the reforms, we will pause the deficit?”

    When the proposal was unveiled in January, the government said the reforms would balance the deficit in 2030, with a multi-billion dollar surplus to pay for measures allowing those in physically demanding jobs to retire early.

    For Budget Minister Gabriel Attal, the calculus is clear. “If we don’t do [the reforms] today, we will have to do much more brutal measures in the future,” he said Friday in an interview with broadcaster France Inter.

    “No pensions reform has made the French happy,” Pascal Perrineau, political scientist at Sciences Po university, told CNN on Friday.

    “Each time there is opposition from public opinion, then little by little the project passes and basically, public opinion is resigned to it,” he said, adding that the government’s failure was in its inability to sell the project to French people.

    They’re not the first to fall at that hurdle. Pensions reform has long been a thorny issue in France. In 1995, weeks-long mass protests forced the government of the day to abandon plans to reform public sector pensions. In 2010, millions took to the streets to oppose raising the retirement age by two years to 62 and in 2014 further reforms were met with wide protests.

    An anti-pension reform demonstrator writes

    For many in France, the pensions system, as with social support more generally, is viewed as the bedrock of the state’s responsibilities and relationship with its citizens.

    The post-World War II social system enshrined rights to a state-funded pension and healthcare, which have been jealously guarded since, in a country where the state has long played a proactive role in ensuring a certain standard of living.

    France has one of the lowest retirement ages in the industrialized world, spending more than most other countries on pensions at nearly 14% of economic output, according to the Organisation for Economic Cooperation and Development.

    But as social discontent mounts over the surging cost of living, protesters at several strikes have repeated a common mantra to CNN: They are taxed heavily and want to preserve a right to a dignified old age.

    Macron is still early in his second term, having been re-elected in 2022, and still has four years to serve as the country’s leader. Despite any popular anger, his position is safe for now.

    However, Thursday’s use of Article 49.3 only reinforces past criticisms that he is out of touch with popular feeling and ambivalent to the will of the French public.

    Politicians to the far left and far right of Macron’s center-right party were quick to jump on his government’s move to skirt a parliamentary vote.

    “After the slap that the Prime Minister just gave the French people, by imposing a reform which they do not want, I think that Elisabeth Borne should go,” tweeted far-right politician Marine Le Pen on Thursday.

    Members of Parliament of left-wing coalition NUPES (New People's Ecologic and Social Union) hold placards as French Prime Minister Elisabeth Borne addresses deputies to confirm the force through of the pension law without a parliament vote on Thursday.

    The leader of France’s far-left, Jean-Luc Melenchon was also quick to hammer the government, blasting the reforms as having “no parliamentary legitimacy” and calling for nationwide spontaneous strike action.

    For sure, popular anger over pension reforms will only complicate Macron’s intentions to introduce further reforms of the education and health sector – projects that were frozen by the Covid-19 pandemic – political scientist Perrineau told CNN.

    The current controversy could ultimately force Macron to negotiate more on future reforms, Perrineau warns – though he notes the French President is not known for compromise.

    His tendency to be “a little imperious, a little impatient” can make political negotiations harder, Perrineau said.

    That, he adds, is “perhaps the limit of Macronism.”

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  • Parisian streets littered with trash after wave of strikes | CNN

    Parisian streets littered with trash after wave of strikes | CNN

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    Paris
    CNN
     — 

    The City of Lights has a garbage problem.

    Massive strikes in Paris against pension reform this week are affecting trash pickup services in the French capital, with piles of waste sitting on many of the city’s normally picturesque streets, including those just steps from monuments like the Eiffel Tower and the Arc de Triomphe.

    As of Saturday, about 4,400 tonnes of trash were awaiting collection, a spokeswoman for the Paris mayor’s office said. The spokeswoman said that the problem is a blockage at trash incinerators caused by the strikes. Garbage trucks have thus been unable to pick up waste in much of the city because they have nowhere to put it.

    Not all neighborhoods have been equally affected. The municipal government is in charge of garbage collection in half of Paris’ 20 arrondissements. Private contractors are responsible for the other 10.

    Municipal services like trash collection in Paris have been affected since Tuesday, when strikes saw flights and trains canceled and delayed; oil refiners blockaded; schools shuttered; and left thousands without electricity. The French capital was the most affected, with nearly 60% of its primary school teachers walking out and the local metro forced to cut service to all but the busiest times.

    Massive protests have been staged regularly throughout France since January 19, with more than a million people coming out multiple to voice their opposition to the government’s plan to raise the official retirement age for most workers as part of reforms to the government’s pension system, one of Europe’s most generous.

    As of Saturday, about 4,400 metric tones of trash were awaiting collection on the streets of Paris, a spokeswoman for the mayor's office said.

    President Emmanuel Macron’s government says the changes are necessary to make the system financially stable.

    The trash buildup in Paris has been sparked health concerns among Parisians and local politicians. The mayor of the 17th arrondissement, Geoffroy Boulard, said in an interview with CNN affiliate BFMTV that he has asked Paris Mayor Anne Hidalgo to hire a private service provider to intervene.

    “We can’t wait,” he said. “This is a matter of public health.”

    Boulard said he’s also worried about the proliferation of rats and rodents as well as Paris’ image.

    Another local mayor, Jean-Pierre Lecoq of the 6th arrondissement, asked Hidalgo to intervene in an open letter he published on Twitter.

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  • Biden and Trump agree on one big thing | CNN Politics

    Biden and Trump agree on one big thing | CNN Politics

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    CNN
     — 

    Joe Biden and Donald Trump are bizarrely on the same page on the top issue so far in the 2024 White House race, as they aim huge, possibly campaign-defining swings at Republicans who they claim will shred retirement benefits.

    The current and former presidents – bitter rivals who agree on little else – are both forcing their foes into political retreats and attempts to whitewash past support for changes that could cut Medicare and Social Security payouts.

    Their strategy is reinforcing a truism of presidential election campaigns that candidates who even entertain the notion of “reforming” these cherished entitlement programs for seniors are playing with fire.

    With typical bluntness, Trump has blasted his potential top rival, Florida Gov. Ron DeSantis, as a “wheelchair over the cliff kind of guy” after he voted, as a member of the US House, for non-binding resolutions that would have raised the age at which most seniors can collect their benefits to 70. As a 2012 congressional candidate, he supported privatizing Social Security, CNN’s KFile has reported. But trying to ease his vulnerability on the issue, DeSantis insisted in a Fox News interview last week: “We’re not going to mess with Social Security.”

    Despite his own proposed cuts to these programs as president, Trump has kept up the attacks. “We’re not going back to people that want to destroy our great Social Security system – even some in our own party; I wonder who that might be – who want to raise the minimum age of Social Security to 70, 75 or even 80 in some cases, and who are out to cut Medicare to a level that will be unrecognizable,” he said at the Conservative Political Action Conference last Saturday.

    A few days later, another Republican hopeful gave both Biden and Trump a new opening to exploit.

    Former South Carolina Gov. Nikki Haley was forced to make clear Thursday that her striking and unspecific call the day before for raising the retirement age was only supposed to refer to Americans currently in their 20s, who are in effect a half century away from drawing their pensions. But her clarification won’t protect the former ambassador to the United Nations from Trump, who is splitting his party down the middle, yet again, by pouncing on competitors who have voiced traditional conservative orthodoxy on cutting or changing the programs. Biden is sure to also highlight Haley’s remarks as he claims only he can thwart a secret GOP agenda to kill off the vital programs.

    “I guarantee you, I will protect Social Security and Medicare without any change. Guaranteed,” the president vowed in Philadelphia on Thursday. “I won’t allow it to be gutted or eliminated as MAGA Republicans have threatened to do.”

    Biden browbeat Republicans during his “State of the Union” address last month to confirm on camera that they support shoring up Social Security and Medicare. And he’s anchoring his likely reelection bid on the most forceful campaign by a Democratic candidate in years on the issue. Some of his attacks are fair; others take statements by GOP leaders out of context. But they’re still potent – since both he and Trump know that when conservatives are explaining that they don’t plan to cut Medicare or retirement benefits, they are usually trying to dig out of a losing position.

    And Biden has public opinion on his side. A Fox News poll last month, for instance, showed that Democrats are preferred over Republicans to better handle Medicare (by 23 points) and Social Security (by 16 points). No wonder Biden seems to relish this particular political battlefield.

    The odd confluence of approaches – from a former president who sought to overturn an election and a successor who sees his administration as vital to saving democracy – says so much about each man’s political instincts, backgrounds and campaign strategy. It is also reflects the shifting character of the Republican Party, which Trump has torn from its corporate, ideologically pure conservative roots to build a new coalition that includes working class voters, often in the Midwest, that Biden is battling hard to win back.

    In one sense, possibly the most thorny domestic issue of the years to come should, of course, have a place in a presidential campaign. But when candidates use it to inflame their political bases, it only makes it harder to address in government. This is especially the case with entitlements since they cut into the DNA of each party and have defined the dividing lines between them for decades – at least until Trump came along and took over the GOP.

    Ever since the New Deal reforms of Franklin Roosevelt, who was president from 1933 to 1945, Democrats – through presidents Lyndon Johnson, Barack Obama and Biden, especially – have sought to use government power to secure the living standards and health care of less well-off and elderly Americans. Republicans, from 1980s President Ronald Reagan onwards, have increasingly sought to find ways to shift the burden of some of this care to the private sector and to reduce or eliminate government’s role in an attempt to whittle away the New Deal reforms of FDR and the Great Society program of LBJ, who was president in the 1960s. They have often paid a heavy price. Republican President George W. Bush’s failed attempt to partially privatize Social Security contributed to a disastrous second term. And Trump still rails against former House Speaker Paul Ryan, who promoted a similar plan.

    While raising the alarm about threats to social programs for seniors might be a shrewd political tactic – especially in mobilizing older voters more likely to show up at the polls – it usually does nothing to address the program’s increasingly dire solvency challenges.

    The latest Congressional Budget Office projection found that Social Security’s retirement trust fund could be exhausted by 2032. At that point, with fewer workers paying into the program and with a rapidly aging population, benefits could be cut by at least 20%, CNN’s Tami Luhby reported. Medicare is even more precarious since its hospital insurance trust fund, known as Part A, will only be able to fully pay scheduled benefits until 2028, its trustees said in their most recent forecast.

    Biden, who released a new budget on Thursday that will help shape the message of his likely reelection bid, has proposed a plan to raise taxes on people earning more than $400,000 a year to shore up the program and would expand the range of drugs for which its managers can negotiate prices. He says the move would keep Medicare solvent until 2050 and would involve no cuts in benefits. The president also wants to target those who earn more than $400,000 with increasing payroll taxes to secure Social Security for the future. There is an infinitesimal chance, however, that the Republican-led House will agree to tax increases, so Biden’s plan represents more a device to deliver a political message than a viable plan.

    Despite warning his fellow Republicans to avoid cutting these programs, it’s unclear how Trump would save them if he wins back the White House – and doing nothing isn’t an option. And while other Republicans insist they don’t want to cut benefits or raise taxes, it’s unclear how they can square the circle.

    Florida Sen. Rick Scott has now excluded Social Security and Medicare from his proposal for all spending programs to be reviewed every five years. His original plan, released when he was leading the Senate GOP’s campaign arm, sparked the ire of his Republican Senate colleagues, including Minority Leader Mitch McConnell, who quickly identified it as a political liability. That hasn’t stopped Biden from repeatedly claiming that it represents Republican policy.

    House Speaker Kevin McCarthy has, meanwhile, said that cuts to Social Security and Medicare are “completely off the table” in what he insists must be negotiations with Biden over raising the government’s borrowing limit later this year. But that position has put him in a bind because it means that in order for the GOP to honor their pledge to slash spending, they will probably have to take aim at other social programs that could also prove unpopular with voters.

    America is not the only country staring down a crisis.

    French President Emmanuel Macron sparked nationwide strikes and protests with his plan to raise the retirement age to 64 from 62. Even China’s Communist Party is struggling as a falling birthrate threatens to inflict severe costs on the world’s most dynamic emerging economy.

    Back in the US, whoever wins the 2024 elections for the White House and Congress, there seems no easily identifiable solution to safeguard these vital programs on which millions of Americans depend. And time is running out.

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  • Rain rates in California during newest storm may reach 1 inch per hour | CNN

    Rain rates in California during newest storm may reach 1 inch per hour | CNN

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    CNN
     — 

    Millions of Californians already hammered by ferocious snowfall were hit Thursday by a new storm, with torrential rain threatening to cause dangerous flooding and the Weather Prediction Center increasing its excessive rainfall outlook for parts of the state to a level 4 of 4.

    “If you have feet of snow on your roof, all of a sudden that’s going to get very, very heavy. That snow is going to absorb the rainfall,” CNN Meteorologist Chad Myers warned Thursday.

    “And then in the higher elevations, it will wash away some of that snowfall. So, rain on snow will begin to fill up parts of the San Joaquin Valley.”

    About 16.7 million people are under flood watches in California and slices of Nevada. Hourly rainfall rates will steadily increase in intensity across California from Thursday overnight through Friday morning, potentially reaching 1 inch per hour.

    The level 4 excessive rainfall warning is targeted to two sections in central California – the coast from Salinas southward to San Luis Obispo and areas in the foothills of the Sierras near Fresno – Thursday overnight into Friday. The last time the Bay Area and Central Coast were in “high risk” was in 2010, the National Weather Service office in San Francisco said.

    Much of the state is under some risk of excessive rainfall Thursday and Friday.

    “An atmospheric river will bring anomalous moisture to California Thursday and Friday. The combination of heavy precipitation and rapid snow melt below 5,000 feet will result in flooding,” the prediction center said Wednesday, adding that “numerous” floods are likely for millions.

    The most vulnerable areas for flooding from rain and snowmelt are creeks and streams in the foothills of the Sierra Nevada, the prediction center said.

    Higher elevations will see heavy, wet snow. “This will lead to difficult travel, and combined with an already deep snowpack, may lead to increasing impacts from the depth and weight of the snow,” the prediction center said.

    The bleak forecast spurred officials across central and Northern California to urge residents to prepare, with residents in one area advised to stock up on essentials for two weeks. Others were asked to use sandbags to protect their properties and clear their waterways to lessen any flooding impacts.

    “We are asking people to watch their news, stay informed, have a full tank of gas in case they need to evacuate, get snow off of their roof if they can, if it’s safe,” Lt. Gov. Eleni Kounalakis told CNN on Thursday. “And just be very vigilant and prepared, because we are in the era of extreme weather, and that’s what we are seeing this week.”

    Here’s what the storm could bring:

    • Heavy rainfall: The National Weather Service in San Francisco forecasts rainfall totals through Sunday morning will be from 1.5-3 inches for most urban areas with 3-6 inches in some hilly areas. As many as 8 inches could fall on the Santa Cruz Mountains and locally up to 12 inches over some peaks and higher terrain of the Santa Lucia Mountains. The National Weather Service in Los Angeles is forecasting 2-4 inches across Santa Barbara and San Luis Obispo counties, with some areas in the latter receiving as many as 10 inches through late Friday night. The Weather Prediction Center said: “The abnormally warm and wet conditions moving in are expected to cause rapid snowmelt.”

    • Ferocious winds: More than 15 million people across central and Northern California, northern Nevada and southwestern Idaho are under high wind alerts. Wind gusts could reach up to 55 mph across lower elevations and up to 70 mph across peaks and mountains. Strong winds could knock down power lines and trees – exacerbating thousands of existing power outages from previous storms that dumped heavy snow, particularly in higher elevations.

    • More intense snow: Parts of the Sierra Nevada above 8,000 feet could get hit with 8 feet of snow. And some higher elevations across southern Oregon and the Rocky Mountains in Idaho, Montana and Wyoming could get pounded by 2 feet of snowfall between Thursday and Friday.

    Already, 34 of California’s 58 counties are under a state of emergency issued by the governor’s office due to previous storms and this week’s severe weather. The state activated its flood operations center Thursday morning.

    The forecast also led some ski resorts to announce closings. Kirkwood Mountain Resort said it would not open Friday, as did the Northstar California resort and the Heavenly resort in South Lake Tahoe, on Nevada’s border with California.

    Meanwhile, the Eastern Sierra Avalanche Center issued a backcountry avalanche warning for sections of Mono County, according to the National Weather Service in Reno, Nevada.

    Many of the areas preparing for Thursday’s storm have not had a chance to recover from the multiple rounds of fierce snow that buried some neighborhoods and made roads inaccessible as residents ran low on essential supplies.

    In hard-hit San Bernardino County, one of the recent storms claimed the life of a resident in a car crash, the sheriff’s department told CNN on Wednesday.

    video thumbnail california snowbank 81year-old

    Grandson reveals 81-year-old’s reaction after surviving in snowbank for a week

    As the storm hits central California, some urban flooding along with flooding from the smaller creeks and streams is likely. Eventually, more roads are expected to flood as the main rivers rise, said Katrina Hand, a meteorologist at the weather service’s Sacramento office.

    San Francisco officials urged small businesses to clear storm drains, stock up on inventory, use sandbags and ensure equipment is properly stored. They also suggested employers consider adjusting their work schedules for workers’ safety.

    In Merced, crews tried to clear storm drains and fortify creek banks ahead of the storm.

    City officials said flooding from previous, deadly rounds of atmospheric rivers that battered much of the state in January has made the city’s water ways unsafe.

    Atmospheric rivers are long, narrow bands of moisture in the atmosphere that carry warm air and water vapor from the tropics.

    “The city urges all residents to avoid these waterways and walking paths,” Merced officials said. “Because of ground saturation and erosion from prior storms, expect to see more debris in creek flows.”

    In San Luis Obispo, city officials on Wednesday said residents should be informed on flood insurance policies and be prepared to protect their homes. On Thursday, they issued an evacuation order for residents south of the Arroyo Grande Creek Levee.

    Evacuation warnings were also issued for residents in low-lying areas of Santa Cruz County and for people in Tulare County.

    In the Big Sur area, officials urged residents to have enough food and other essentials for at least two weeks. The Big Sur area, a roughly 90-mile stretch of California’s central coast, is one of the area’s renowned tourist attractions with rugged cliffs, mountains and hidden beaches along the Pacific Coast Highway.

    In Kern County, home to Bakersfield, fire officials urged residents to create emergency kits and to be aware of escape routes and safe areas to seek shelter if needed. Officials also encouraged the use of sandbags to protect properties.

    And in Sacramento, city officials said they intend to open overnight warming centers beginning Friday in preparation for the expected heavy rainfall and low temperatures.

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  • Not touching Social Security could lead to 20% benefit cut within a decade | CNN Politics

    Not touching Social Security could lead to 20% benefit cut within a decade | CNN Politics

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    CNN
     — 

    President Joe Biden and House Republicans have promised not to touch Social Security in their battle over cutting spending to address the nation’s debt ceiling crisis.

    While that vow is intended to indicate support of the popular entitlement program, it could actually lead to financial disaster.

    Tens of millions of senior citizens and other recipients could see their benefits slashed by at least 20% within a decade. The latest Congressional Budget Office projection found that Social Security’s retirement trust fund would be exhausted by 2032.

    “There’s a sense in which doing nothing does not preserve Social Security but affects the benefits that are not able to be paid out,” CBO Director Phillip Swagel said at a Bipartisan Policy Center event last month.

    Social Security has long been on shaky financial ground. As the US population ages, there are fewer workers paying into the program and supporting the ballooning number of beneficiaries, who are also living longer. In all, nearly 66 million retired workers, their dependents and survivors, disabled workers and their dependents receive monthly payments.

    Forecasts on when Social Security’s retirement and disability trust funds may be depleted differ by a few years. Social Security’s trustees last year pegged the date at 2035 if Congress doesn’t act.

    However, the entitlement program is also one of the third rails of American politics, so elected officials are hesitant to suggest any changes that could lead to benefit cuts.

    “Pretending this isn’t a problem, that this isn’t current law, is dishonest,” said Gordon Gray, the director of fiscal policy at the right-leaning American Action Forum. “And it is a choice – a number of policymakers are making this choice. And it is a major financial risk to the retirement benefits of tens of millions of Americans.”

    The last time Congress enacted a major overhaul, in 1983, Social Security was only months away from being able to pay full benefits. At that time, Democratic lawmakers who controlled the House agreed with Senate Republicans and GOP President Ronald Reagan to increase payroll taxes and gradually raise the normal retirement age from 65 to 67, among other reforms.

    While Biden has promised to strengthen Social Security and defend it from any cuts by Republicans, he has yet to lay out his vision for protecting the program. Ahead of his full budget release this week, the president on Tuesday unveiled a plan to bolster a key Medicare trust fund – which could be depleted as soon as 2028 – by raising taxes on higher-income earners and allowing Medicare to negotiate prices for even more drugs.

    There are several ways to put Social Security on more solid financial footing, though each has its opponents on Capitol Hill and in the White House. Lawmakers could raise the early retirement age, currently 62, or increase the normal retirement age again. They could hike the payroll tax rate, now 12.4% split between the employer and worker, or lift the cap on income subject to the levy, currently $160,200. Congress could also change the formula of the annual cost-of-living adjustment so it ramps up more slowly.

    However, it’s unlikely anything will be done in the near term, in part because of the current lack of bipartisanship in Washington, said Gary Engelhardt, economics professor at Syracuse University.

    “It’s only going to be more expensive, the longer you wait,” he said. “But Americans have a penchant for waiting to do things politically. So I just feel like nothing’s going to happen in the short run.”

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  • Senate votes to overturn Biden administration retirement investment rule Republicans decry as ‘woke’ | CNN Politics

    Senate votes to overturn Biden administration retirement investment rule Republicans decry as ‘woke’ | CNN Politics

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    CNN
     — 

    The Senate passed a politically charged resolution on Wednesday to overturn a Biden administration retirement investment rule that allows managers of retirement funds to consider the impact of climate change and other environmental, social and governance factors when picking investments.

    Republicans complain the rule is “woke” policy that pushes a liberal agenda on Americans and will hurt retirees’ bottom lines, while Democrats say it’s not about ideology and will help investors.

    The measure, which would rescind a Department of Labor rule, will next go to President Joe Biden’s desk as it was passed by the House on Tuesday. The administration, however, has issued a veto threat. As a result, passage of the resolution could pave the way for Biden to issue the first veto of his presidency.

    Opponents of the rule could try to override a veto, but at this point it appears unlikely they could get the two-thirds majority needed in each chamber to do so.

    The resolution, authored by GOP Sen. Mike Braun of Indiana, only needed a simple majority to pass. It passed on a vote of 50 to 46 with Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana voting with Republicans.

    Republican lawmakers advanced it under the Congressional Review Act, which allows Congress to roll back regulations from the executive branch without needing to clear the 60-vote threshold in the Senate that is necessary for most legislation.

    Opponents of the rule have argued that it politicizes retirement investments and that the Biden administration is using it as a way to push a liberal agenda on Americans.

    “The Biden Administration wants to let Wall Street use workers’ hard-earned savings to pursue left-wing political initiatives,” Senate GOP leader Mitch McConnell said in remarks on the Senate floor on Tuesday morning.

    Republican Sen. John Barrasso of Wyoming said at a news conference on Tuesday, “What’s happened here is the woke and weaponized bureaucracy at the Department of Labor has come out with new regulations on retirement funds, and they want retirement funds to be invested in things that are consistent with their very liberal, left-wing agenda.”

    Supporters of the rule argue that it is not a mandate – it allows, but does not require, the consideration of environmental, social and governance factors in investment selection.

    Senate Majority Leader Chuck Schumer said on Wednesday that Republicans are “using the same tired attacks we’ve heard for a while now that this is more wokeness. … But Republicans are missing or ignoring an important point: Nothing in the (Labor Department) rule imposes a mandate.”

    “This isn’t about ideological preference, it’s about looking at the biggest picture possible for investments to minimize risk and maximize returns,” he said, noting it’s a narrow rule that is “literally allowing the free market to do its work.”

    The statement of administration policy saying that Biden would veto the measure similarly states, “the 2022 rule is not a mandate – it does not require any fiduciary to make investment decisions based solely on ESG factors. The rule simply makes sure that retirement plan fiduciaries must engage in a risk and return analysis of their investment decisions and recognizes that these factors can be relevant to that analysis.”

    Republicans are also working to advance a measure to rescind a controversial Washington, DC, crime law – which critics argue is soft on violent criminals – with a simple majority vote in the Senate.

    Many Democrats oppose overriding the DC law. They argue local officials should make their own laws free of congressional interference and decry Republicans as hypocrites since they typically promote state and local rights.

    A Senate vote on the DC measure is expected next week.

    This story and headline have been updated with additional developments.

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  • 401(k) balances rise, despite economic and market challenges | CNN Business

    401(k) balances rise, despite economic and market challenges | CNN Business

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    New York
    CNN
     — 

    Despite higher prices, endless talk of a possible recession and falling markets, 401(k) participants managed to keep their savings rates relatively steady in the fourth quarter of last year, helping to stabilize their nest eggs and increase their overall average balances.

    That’s according to new data from Fidelity Investments, one of the largest providers of workplace retirement plans, which combined represent $2.8 trillion in assets on its platform.

    “Fortunately, the data show that retirement savers understand the importance of saving for the long-term, despite market shift. We are encouraged to see people look past the current volatility and continue to make smart choices for their future,” said Kevin Barry, president of Workplace Investing at Fidelity.

    By that Barry means the average 401(k) savings rate (including both employee contributions and employer matches) held roughly steady at 13.7%, down from the 13.8% in the third quarter and 13.9% in the second quarter.

    Among generations in the workforce, Baby Boomers had the highest savings rate as a percent of their income (16.5%). The youngest cohort – Gen Z workers – saved 10.2%.

    A third of participants actually increased their contribution rate over the last year, according to Fidelity. But the average rate among this group is still very low – at just 2.6%.

    The average 401(k) balance in Fidelity-administered plans, meanwhile, rose 7% from the third quarter, to $103,900. That said, thanks to poor performances in both stocks and bonds last year, the average is still 23% below the $135,600 recorded at the end of 2021.

    In terms of 401(k) loans, the percent of active plan participants with outstanding ones remained at 16.7%. That’s down from 17% a year earlier and 21% from five years ago, Fidelity said.

    The average outstanding loan amount was $10,200. Among different age groups, Gen Xers had the highest average, followed by Baby Boomers. And even though they are just getting started in their careers and haven’t had a lot of time to amass savings, 3.2% of Gen Z workers also had outstanding 401(k) loans, but their average amount ($3,000) was the lowest among all age groups.

    Hardship withdrawals from 401(k)s – money taken when a participant is under financial stress of some kind (e.g., to prevent eviction, pay for funeral expenses or to cover a near-term tuition bill) – stood at 2.4% for the year, up from 1.9% in 2021. The average amount taken out was $2,200. Unlike a 401(k) loan, a hardship withdrawal does not need to be paid back, and will be taxed. Plus, in some instances it may be subject to a 10% penalty if you’re under 59-1/2.

    The new retirement law, Secure 2.0, includes a provision that will make it easier and less costly for 401(k) participants to take money out of their account for emergency needs up to $1,000 in a year.

    Apart from its workplace retirement plans, Fidelity reported a 10.2% annual increase in the number of IRAs on its platform, noting that 61% of the IRA contributions made in the fourth quarter of last year went into Roth IRAs.

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