The Senate Finance Committee is scheduled to mark up a comprehensive retirement savings bill that includes the majority of a pension simplification bill from Sens. Chuck Grassley and Bob Graham. The Finance Committee mark-up is scheduled for Thursday, Sept. 7, at 10 a.m. in 215 Dirksen.
"In these good economic times, the emphasis should be on saving money," Grassley said. "Like the fable about the grasshopper and the ant, Americans should be storing up resources for later. Unfortunately, complex pension laws and artificially low limits make it hard for workers to save. For four years, Senator Graham and I have worked to simplify the pension system, and to get more Americans in pension plans. Finance Chairman Roth shares our goal."
Grassley and Graham, both Finance Committee members, are sponsors of the Pension Coverage and Portability Act (S. 741). Grassley is also chairman of the Special Committee on Aging. Their bill promotes portable, secure pension plans that reward employees who save and plan for their retirement. Graham-Grassley provisions in the chairman's comprehensive retirement savings bill include:
Modification of the top heavy rules. This reduces burdensome and cumbersome rules that apply only to small businesses. This provision is designed to expand pension coverage among small businesses.
The elimination of the 25 percent of compensation limit on total contributions (employee and employer) to defined contribution plans. This helps lower income individuals, especially women who are more likely than men to leave and re-enter the workforce.
The increased ability to roll over pension money when an employee leaves one employer and goes to the next employer.
Grassley said he hopes to see these provisions signed into law before Congress adjourns this fall. "Each year that passes is one year closer to baby boomer retirement," Grassley said. "Employers want to help their employees to be prepared. Congress needs to give them the tools to do so."