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The Pension Reform Report

Table of Contents - Click on Bill of Interest

Pension Reform News
Studies on Pension Reform Issues
Save More for Retirement Act of 2005 (S. 875)
Employer Retirement Savings Accounts (ERSAs)
Retirement Security Act of 2004 (H.R. 3821)
Retirement Security for Life Act of 2004 (H.R. 4849)
Pension Security Act of 2003 (H.R. 1000)
The Pension Preservation and Savings Expansion Act of 2003 (H.R. 1776)
The Pension Protection and Expansion Act of 2003 (S. 9)

Pension Reform News

Senate Passes "The Pension Security and Transparency Act of 2005" Summary: Requires defined contribution plans to allow employees to divest employer stock and diversify their pension asset investments. Sets forth participant protections, including diversification rights, under defined contribution plans. Revises other requirements. Located at: Benefitsblog.com, November 2005. Click on headline for full article.

401k Enhancement Act (S. 1819) Introduced Summary: To amend the Internal Revenue Code of 1986 to increase participation and savings in cash or deferred plans through automatic contribution and default investment arrangements, and for other purposes. Includes link to text of bill. Located at: 401khelpcenter.com, October 2005. Click on headline for full article.

Automatic Enrollment Legislation Summary Chart Summary: This is a chart that prepared by the American Benefits Council that summarizes all bills introduced in Congress in the 109th Congress on the issue of Automatic Enrollment. Located at: American Benefits Council, , October 2005. Click on headline for full article.

Defined Contribution Issues in the "Pension Security and Transparency Act of 2005" (S. 1783) Summary: The Pension Security and Transparency Act of 2005 (PSTA), was introduced on Sept. 28. While the bulk of the bill consists of substantive pension and hybrid plan reform provisions, the bill also contains many of the defined contribution plan provisions that were introduced in the Senate Finance Committee's NESTEG bill. This is comparison of the defined contribution plan issues in NESTEG with those in PSTA. Located at: ERISA Industry Committee, September 2005. Click on headline for full article.

House Committee Approves ERISA Amendments Summary: The House Committee on Education and the Workforce approved the Pension Protection Act of 2005 (HR 2830), which, if enacted, would make several amendments to the prohibited transaction rules of ERISA. The Bill also provides a definition of "plan assets" and clarifies certain other ERISA requirements. The highlights of the Bill are described in this article. Located at: Dechert LLP , August 2005. Click on headline for full article.

Portman and Cardin Introduce Comprehensive Pension Legislation Summary: Representative Portman (R-OH) has introduced H.R. 1960, the Individual and Workplace Retirement Savings Promotion Act, and Representative Cardin (D-MD) has introduced H.R. 1061, the Preservation and Savings Expansion Act. The bills, which propose a broad array of changes to rules for both defined benefit and defined contribution plans, are nearly identical -- the major difference is that Roth 401k's are repealed in Cardin's legislation. Located at: Chicago Consulting Actuaries, May 2005. Click on headline for full article.

Summary of the 'Individual and Workplace Retirement Savings Promotion Act' (H.R. 1960) Summary: This is a summary of the provisions of this bill recently introduced by Representative Rob Portman. Located at: American Benefits Council , May 2005. Click on headline for full article.

Summary of the 'Pension Preservation and Savings Expansion Act' (H.R. 1961) Summary: This is a summary of the provisions of this bill recently introduced by Representative Cardin. Located at: American Benefits Council , May 2005. Click on headline for full article.

Studies on Pension Reform Issues
US Private Pensions at a Crossroads Summary: The US private pension system is at a crossroads. Its future direction is now under intense scrutiny by Congress, which has recently considered two very different proposals for change, each containing elements likely to be on the national agenda for some time. One approach embodies a traditional approach to pension reform, with an omnibus statute that tinkers with almost every aspect of the private pension system to make incremental changes. A second seeks to bring radical change and simplification, with sweeping consolidation of the number and types of defined contribution plans. This article evaluates these two approaches, one for incremental change, the other for structural reform, and then considers an alternative. Located at: Pension Research Council, Wharton School , August 2004. Click on headline for full article.
Looking Backward, Looking Forward: Where is Pension Policy Headed? Summary: Since the passage of the Employee Retirement Income Security Act of 1974, public policy has continuously shaped the trajectory of the US retirement system. It is clear that the policy process will continue to be key in the future reinvention of the retirement paradigm. Our study sets forth four perspectives on strengths and weaknesses of the current retirement system, with the goal of helping shape an environment more conducive to a vibrant, effective, and easily administered retirement system. Located at: Pension Research Council, Wharton School , August 2004. Click on headline for full article.
Save More for Retirement Act of 2005 (S. 875)
Summary of Bingaman Automatic Enrollment Bill (S. 875) Summary: This legislation will provide incentives for employers to offer or modify their existing 401k and other self-directed retirement plans so that employees are enrolled upon hire unless they opt out of participating. It contains a section that offers specific relief from discrimination testing if a plan meets a set of criteria that has been proven to increase savings for workers. Located at: American Benefits Council , April 2005. Click on headline for full article.

Automatic Enrollment Bill (S. 875) Summary: This is the actual Bill as of April 22, 2005. Located at: American Benefits Council , April 2005. Click on headline for full article.

Talking Points on Automatic Enrollment and Automatic Acceleration Summary: These talking points were prepared by the American Benefits Council in support of this bill. Located at: American Benefits Council , April 2005. Click on headline for full article.

Employer Retirement Savings Accounts (ERSAs)
Bush Again Pushes for RSA, LSA and ERSA in Fiscal 2006 Budget Summary: President Bush sent lawmakers his proposed fiscal 2006 budget on Monday, February 07, 2005. As expected, the President has again proposed the Retirement Savings Account (RSA), Lifetime Savings Accounts (LSA) and Employer Retirement Savings Account (ERSA). Located at: 401khelpcenter.com, February 2005. Click on headline for full article.

Is "Third Time The Charm" for the President's Retirement Savings Accounts? Summary: The Bush Administration first proposed new types of savings and retirement accounts in its 2004 budget, then again in 2005 and 2006 budget. In the past two years, ERSAs, RSAs, LSAs, and IDAs met with mixed reviews and did not garner the necessary support in Congress. This year, however, they may be "swept in" along with tax reform proposals that emerge or legislation introduced to reform Social Security. Located at: Mellon , February 2005. Click on headline for full article.

Retirement Security Act of 2004 (H.R. 3821)
H.R. 3821, the Bipartisan Retirement Security Act of 2004, introduced by Representatives Kolbe and Stenholm, would make numerous changes to the Social Security system. The bill would establish a system of individual accounts (IAs) funded by the existing payroll tax, and would generally reduce defined benefits compared with current law. Some provisions would raise scheduled benefits for some recipients or increase payroll taxes for some workers.
Long-Term Analysis of H.R. 3821 Summary: The analysis considers the impact that the proposed reform would have on the Social Security program, the federal budget, the U.S. economy, and present and future beneficiaries.
Cost Analysis of H.R. 3821 Summary: H.R. 3821 would have substantial long-run effects on the Social Security program and the federal budget.
Retirement Security for Life Act of 2004 (H.R. 4849)
Retirement Security for Life Act of 2004 Summary: Amends the Internal Revenue Code to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments.
Proposed Law Change May Hurt DC Plans Summary: A newly introduced bill in Congress aims to give people - especially America's 77 million baby boomers - more reason to select retirement vehicles that provide guaranteed lifetime income. However, some experts warn employer-sponsored defined contribution plans may suffer as a result.
Pension Security Act of 2003 (H.R. 1000)
Summary of H.R. 1000, The Pension Security Act of 2003 Summary: A good section-by-section review of H.R. 1000 prepared by Edward Ferrigno, Vice President, Washington Affairs, of the Profit Sharing/401k Council of America.
House OKs 401k Bill Allowing More Options
House Passes 401k Bill Allowing Advice
Summary of Bill Summary: This is a summary and side-by-side comparison of the bill with current law. Prepared by ASPA. Updated on May 14, 2003.
Boehner, Johnson Reintroduce Bipartisan Pension Security Act Summary: House Education & the Workforce Committee Chairman John Boehner (R-OH) and Employer-Employee Relations Chairman Sam Johnson (R-TX) announced that they formally reintroduced the Pension Security Act (H.R. 1000), the comprehensive pension protection bill the House passed last year that would give millions of Americans new tools to help them better manage and expand their retirement savings.
Testimony on the Pension Security Act Summary: Testimony on February 13, 2003 before the Subcommittee on Employer-Employee Relations Hearing on The Pension Security Act.
The Pension Security Act of 2003 Summary: Profit Sharing/401k Council of America has put together this section-by-section summary of the The Pension Security Act of 2003 (HR 1000) as introduced on February 27, 2003.
Opponents Voice Concerns Over Bill's Flaws Summary: Introduced just over a month ago by Reps. Rob Portman (R-Ohio) and Ben Cardin (D-Md.), the 2003 Pension Preservation and Savings Expansion Act is being ripped point by point by several groups highlighting the measure's perceived shortcomings.
The Pension Preservation and Savings Expansion Act of 2003 (H.R. 1776)
Bill Summary Summary: Description of H.R. 1776 "The Pension Preservation and Savings Expansion Act of 2003" as reported by the House Committee on Ways & Means on July 18, 2003. Emphasis in this summary is on private sector defined contribution plans .
"Talking Points" in Support of H.R. 1776 Made Available Summary: The American Benefits Council (the Council) is one of the largest advocates of employer-sponsored benefit programs in Washington, D.C. Their members either sponsor directly, administer or service retirement, health and stock compensation plans covering more than 100 million Americans. As part of their support for H.R. 1776, the Council has developed a series of talking points list here.
Pension Rights Center Publish Fact Sheet on the Portman-Cardin Bill Summary: According to the Pension Rights Center, H.R. 1776 would neither preserve pensions nor enhance savings.
Portman and Cardin Introduce Bipartisan Retirement Security Bill Summary: Representatives Rob Portman (R-OH) and Ben Cardin (D-MD) have introduced the Pension Preservation and Savings Expansion Act of 2003. The bill continues their bipartisan tradition of pension reform by focusing on protecting workers' pensions, promoting more coverage and enhancing retirement savings.
Bill Summary Summary: This summary was prepared by the law firm of Sutherland Asbill & Brennan LLP
Bill Summary Summary: This summary was prepared by Representatives Portman and Cardin and made available by the American Benefits Council.
COMMENTARY: The Pension Preservation and Savings Expansion Act (H.R. 1776) Would Undermine Spousal Pension Rights Summary: Despite the inclusion of a few provisions beneficial to women, on balance, H.R. 1776 is a bad deal for women, and indeed represents a huge step backwards for women.
The Pension Protection and Expansion Act of 2003 (S. 9)
An overview of this bill prepared by the U.S. Senate Democratic Caucus.