Press Release
March 14, 2001
For additional information:
Deanna Johnson Keim or Jason Hammersla
202-289-6700
Council Urges Rapid Passage of Bipartisan Retirement Savings Legislation
WASHINGTON, DC -- "With personal savings rates as low as those of the Great Depression and Baby Boomers currently setting aside only about 40 percent of what they will need in retirement, it is time for America to get serious about its retirement future," said James A. Klein, President of the American Benefits Council. "We are pleased to heartily endorse the bipartisan legislative package introduced today by Representatives Rob Portman (R-OH) and Ben Cardin (D-MD) that elevates increasing retirement savings to the national priority it must be."
"This bill stands as one of the finest examples of bipartisanship," Klein continued. "Mr. Portman and Mr. Cardin gathered a majority of the House to cosponsor this legislation to strengthen employer-sponsored retirement plans and IRAs. This set of proposals overwhelming passed the House -- twice -- in 2000 with 401 votes and won unanimous approval from the Senate Finance Committee. On both sides of the aisle, the goal this year is to cross the finish line -- enactment -- and we're proud that this cause will soon be bolstered by the introduction of a similar bill in the Senate by Senators Charles Grassley (R-IA) and Max Baucus (D-MT)."
The retirement savings package introduced today closely tracks the bill approved by the House last year (H.R. 1102 in the 106th Congress) and contains a substantial number of provisions originally developed by the Council, noted Klein. The legislation would raise contribution and benefits limits on IRAs and employer-sponsored retirement plans. Several provisions would help small companies that often lack any retirement plan to start one for their workers. The bill would streamline and simplify many of the complex administrative requirements burdening today's retirement plan system and would improve plan funding. Rank-and-file workers will directly benefit from the bill's "catch-up" contributions for older workers, greater portability of benefits between plans for a mobile workforce, and accelerated vesting of employer contributions.
"These provisions will help all workers and we encourage them to join us in advocating for the bill's enactment," said Klein. "Signing our electronic petition urging Congress to pass this bill at www.passpensionreform.org is a quick and easy way in which everyone can add their voices to support the enactment of this important legislation."
Concluded Klein, "Mr. Portman and Mr. Cardin set the standard when it comes to developing sound retirement policy. Their landmark legislation will make it much easier for individuals to save and will enable employers -- through expanded retirement plan coverage and increased savings initiatives -- to help their employees prepare for more financially secure futures. As in the past, the Council will advocate strongly for its passage and enactment this year."
James A. Klein, Council President; James M. Delaplane, Council vice president, retirement policy; and John Scott, Council director, retirement policy are available at any time to comment further on these issues. You may reach them by contacting Deanna Johnson Keim, Council director, communications, or Jason Hammersla, Council communications associate by phone at 202-289-6700 or by e-mail at djkeim@abcstaff.org or jhammersla@abcstaff.org.
The American Benefits Council (formerly APPWP - the Benefits Association) is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council's members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.
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