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.

   In giving individuals more control over their retirement accounts, the Protecting America's Savings Act, HR 5553, would allow non-spousal beneficiaries to roll over inherited retirement plan savings into an IRA and withdraw money as an annuity. Currently, only surviving spouses may use a rollover in this manner. It also would allow individuals to rollover or transfer retirement plan assets to a spouse's retirement plan or IRA during their lifetime.

   In an effort to increase the number of low-to-moderate income Americans who save for retirement, the bill would expand and make permanent tax credits for lower-income savers. The bill also would modify the existing requirements that force workplace pension plan participants and IRA holders to begin drawing down their saving at age 70-1/2. The change would delay the required minimum distribution age to 75 without penalty and would exclude $300,000 from the minimum distribution rules.

   In the wake of the collapse of Enron and Worldcom, the measure also would provide greater protections for employees who may be affected by mismanaged or fraudulently operated companies. It would impose a 50% excise tax on "golden parachute" payments to executives when a company goes bankrupt, and it would direct the Secretary of the Treasury to study and report to Congress on new ways to protect savings in defined contribution plans.

   "We must do a better job of enabling and encouraging all Americans to save for retirement. We must also face the realities of modern life -- namely that more people are working, and they are living and working longer. The key is to provide Americans with the necessary tools to exert greater control over their retirement savings," said Rep. Cardin.

   The bill also includes provisions that: accelerate IRA retirement plan catch-up contributions; eliminate IRA marriage penalties; allow additional employer contributions to SIMPLE plans; accelerate income eligibility for deductible IRAs; accelerate workplace retirement plan contribution amounts; allow catch-up contributions for federal employees; and allow periodic payment reductions without penalty.

   In February 2002, Reps. Cardin and Portman introduced the Employee Retirement Savings Bill of Rights, HR 3669, to give employees greater control over their retirement investments and substantial new rights to avoid over-concentration in the stock of their employer. In 2001, Reps. Cardin and Portman's Comprehensive Retirement Security and Pension Reform Act, HR 10, was enacted into law, making it easier, especially for small businesses, to establish private pension plans that will encourage their workers to save.