Pension Reform

Jessup, MD -- At a headquarters visit today at Baltimore Aircoil Company (BAC), over 150 of the company’s employee-owners gathered to tell U.S. Rep. Ben Cardin (D-MD) that his 2001 pension legislation translated into substantial retirement savings for BAC employees. BAC is the world’s largest manufacturer of factory assembled evaporative cooling, thermal storage, and heat transfer equipment. The company is 100 percent owned by an employee stock ownership plan, or “ESOP.”

Mr. Speaker, as our soldiers face a time of war and strife across the globe, we must be mindful not only of the risks that they face in combat, but also the barriers that they face to planning a secure future here at home after the battle is done.

WASHINGTON – Americans would be able to save more for retirement and have more control over their savings under new pension legislation introduced today by Rep. Benjamin L. Cardin (D-MD). The Cardin bill “follows the Portman-Cardin tradition by giving Americans new savings opportunities, strengthening and expanding the employer-sponsored retirement system, and offering important new protections to workers participating in retirement savings plans.”

Making the Savers’ Credit Refundable - Increasing the availability of the tax credit included in the 2001 pension bill for low and moderate-income savers who contribute to a workplace retirement plan or IRA, by making the credit available to Americans regardless of income tax liability.

Mr. Speaker, I have greatly enjoyed working with my good friend from Ohio, Representative Rob Portman, on pension legislation for almost a decade. We have gotten good, bipartisan – even nonpartisan – legislation passed into law that has helped, and will continue to help, all Americans save for a better future.

WASHINGTON, DC – Americans would be able to save more for retirement and have more control over their savings under the bipartisan Pension Preservation and Savings Expansion Act introduced today by Reps. Rob Portman (R-OH) and Benjamin L. Cardin (D-MD). The Portman-Cardin legislation would provide individuals and families with new savings tools, would further strengthen and expand the employer-sponsored retirement system and would offer important new protections to workers participating in retirement savings plans.

Congress enacted the Portman/Cardin Comprehensive Retirement Security and Pension Reform Act as part of the 2001 tax relief act. This landmark pension legislation, introduced as H.R. 10 in the 107th Congress, increased 401(k) and IRA savings limits, instituted catch-up contributions for older workers, enhanced pension portability through reduced vesting and removal of rollover barriers, encouraged small business pension coverage and simplified pension regulation. The new Portman/Cardin Pension Preservation and Savings Expansion Act builds on these important reforms by making the next generation of improvements to our nation's savings and pension systems. With adoption of these new proposals, Congress will provide individuals and families with a number of important new savings tools, will further strengthen and expand the employer-sponsored retirement system, will offer important new protections to retirement plan participants and will assist retirees in managing and preserving retirement assets and income. The Pension Preservation and Savings Expansion Act contains important reforms in the following areas:

Mr. Chairman, the States have made some important progress over the last six years in moving individuals from welfare to work. Many of us want to see them continue this trend, while also helping former welfare recipients move up the economic ladder.

Expanding and Making Permanent Tax Credits for Low & Moderate Income Savers - "The Savers Credit" enacted in the 2001 Economic Growth and Relief Reconciliation Act (EGTRRA) is currently set to expire in 2006. This credit reduces the tax bill for individuals who contribute to a workplace retirement plan or IRA. Under the current credit, single filers with incomes of up to $25,000 and joint filers with incomes of up to $50,000 are eligible for a non-refundable tax credit of up to $2,000. The Protecting America's Savings Act would make this credit permanent, expand the percentage of the credit, and increase the income level of eligible beneficiaries to $32,500 for single filers and $65,000 for joint filers.

WASHINGTON - Reps. Benjamin L. Cardin and Rob Portman today introduced a pension reform bill that would help low- and moderate-income Americans save for retirement, raise the age for minimum required distributions, make it easier for many Americans to roll over retirement accounts, and accelerate contributions into retirement savings accounts.

WASHINGTON – At a special award ceremony last night, Rep. Benjamin L. Cardin received the "Restoring the Balance Award" from the National Conference on State Legislatures (NCSL) for his work in passing pension reform legislation that increases the opportunity for state and local workers to save for retirement.

WASHINGTON – Rep. Benjamin L. Cardin will join with Republican Rep. Rob Portman on Monday in introducing legislation that would empower employees to take control of their retirement investments and give them substantial new rights to avoid over-concentration in the stock of their employer.

WASHINGTON -- Rep. Benjamin L. Cardin today joined Rep. Rob Portman (OH) in reintroducing legislation that would encourage more Americans to save for their retirement by making it easier for them to contribute to private pension plans. The measure, which passed the House last summer overwhelmingly by a 401-25 vote, would provide relief to small businesses by removing some of the burdens of administering pension and retirement plans.

WASHINGTON - Rep. Benjamin L. Cardin's Comprehensive Retirement Security and Pension Reform Act, HR 1102, overwhelmingly passed the House of Representatives today by a 401-to-25 vote. The bipartisan legislation will make it possible for more Americans to save for retirement by making it easier to contribute to private pension plans and by increasing IRA contributions.