Aging Committee Hearing Leads to Bipartisan Legislation


Grassley Introduces Bill to Expand Pension Counseling Projects


Jill Kozeny

202-224-1308


Following an Aging Committee hearing that highlighted a rise in pension miscalculations, Sen. Chuck Grassley today introduced a bi-partisan bill to reestablish funding for pension counseling projects which serve as resources for people with pension problems.

"My hearing showed the number of people being underpaid by their pension plans is on the rise," said Grassley, chairman of the Senate Special Committee on Aging. "For the first time, our bill will give people with pension problems a single place to call for help. Our bill gives older Americans a new hope in their fight to get every last penny of pension benefits they have earned."

The legislation follows testimony given Monday afternoon at an Aging Committee hearing, Shortchanged: Pension Miscalculations, that indicated people have no single source of help to turn to when they have problems with their pension. The bill Grassley introduced today with Sen. John Breaux of Louisiana would modify the Older Americans Act to establish an 800 number to serve as a single source of entry for those seeking pension assistance. The bill also will expand the authority of the projects in order to reach more regions. Congress has not provided specific funds for these projects since 1996. Currently there are six projects still receiving minimal funding through the Administration on Aging and the Department of Labor, but this funding will run out on September 30 at the end of the current fiscal year.

"Pension miscalculations are a big problem that's tripled in the last ten years," said Grassley. "At least 8 percent of those receiving pension benefits are being underpaid. The number may be as high as 20 percent. These people need a place to turn for assistance. They need someone to guide them through the complicated system."

In addition to the bill, Grassley joined Sen. John Breaux of Louisiana to send a letter seeking funding to Sen. Specter who chairs the Appropriations subcommittee which funds the Older Americans Act.

Summary of the Pension Assistance & Counseling Act of 1997



Title IV of the Older Americans Act provides federal authority for pension information demonstration projects. First funded in 1993, seven local and regional organizations in different locations across the country were able to conduct outreach to workers who needed help understanding their pension plans and benefits. The projects also provide people with information and expert advice on pursuing problems or disputes with their employers about their pensions. Demonstration projects have continued for the last three and a half years but will lose federal funds at the end of this fiscal year.

The Pension Assistance & Counseling Act of 1997 was introduced to meet the documented need of providing workers and retirees with counseling and assistance with their pensions. The legislation updates the authority for the demonstration projects in the following ways:

  • Broadens the scope of the demonstration projects to emphasize the need for counseling, not just information. This will insure that volunteers who work in the projects can be pro-active in helping workers and retirees pursue pension problems.
  • Removes the limitation on the number of projects which can be funded. The success of the initial projects demonstrates that with training and technical back up assistance, people who need help will get it in a cost-effective way. The current pension projects have recovered $4 in benefits for every $1 of federal funds. Pension counseling will be expanded to reach more people in other states and regions.
  • Establishes authority for the Administration on Aging to create an 800 number that would operate as a single point of entry for people who need answers to basic questions. The 800 number operators will also be able to provide referrals to experts, counselors, and other sources of pension assistance which can work on behalf of the retiree or worker.

In addition to the introduction of S. 948, Sens. Grassley and Breaux took the next step to ensure that the pension counseling projects and the 800 number will be funded for Fiscal Year 1998. In a letter to Sen. Arlen Specter, chairman of Labor-HHS-Education Appropriations subcommittee, Grassley and Breaux emphasized the importance of these projects, particularly as we prepare for the retirement of the Baby Boom generation. They feel a minimum of $3 million to $5 million is needed for the projects.