Mandatory IRA's For All?

In doing research for my last post, I came upon this. Senate Bill 3760 proposed by Senators Jeff Bingaman (D-NM) and John Kerry (D-MA.). This bill proposes to established mandatory automatic IRAs for full-time workers who are not covered by company retirement programs. This will require employers to take 3% from your compensation and put into a government run "retirement" program.

There is alot of wherefor's and whatnot's in the legalize writing but this one caught my eye...
‘(B) AUTHORITY OF SECRETARY TO PROVIDE FOR PERIODIC INCREASES- In the case of qualifying employees under an automatic IRA arrangement for 2 or more consecutive years, the Secretary may by regulation provide for periodic (not more frequent than annual) increases in the percentage of compensation an employee is deemed to have elected under subparagraph (A).

So let me work something out. If a lower income employee is making $8.00 and hour and works 40 hours per week and works 51 weeks per year he will earn $16,320 in a year before FDIC and SS. The government will then require him to pay 3% or $489.60 (let's round up to $500) towards his "retirement". I propose the questions...will it really help him in the future, and will he have it waiting on him or will it be like the bankrupt Social Security?