WASHINGTON - Rep. Benjamin L. Cardin's Comprehensive Retirement Security and Pension Reform Act, HR 10, overwhelmingly passed the House of Representatives today by a 407-to-24 vote. The bipartisan legislation, which was introduced by Reps. Benjamin L. Cardin, D-MD and Rob Portman, R-OH, will make it possible for more Americans to save for retirement by making it easier, especially for small businesses, to establish private pension plans that will encourage their workers to save.

    In addition to providing relief to small businesses by removing some of the burdens of administering pension and retirement plans, HR 10 would increase the amount of money workers could contribute to retirement savings plans, including IRAs and 401 (k) plans, and would allow employees age 50 and older to contribute an additional $5,000 each year to their pension plan. It would also make it easier for employees who change jobs to "roll over" pension funds into their new employer's plan or into an IRA.

    "This bill has strong bipartisan support and I am extremely optimistic that it will become law. It is well understood by members of both parties and in both chambers that we need to encourage more employers to offer pension plans and more employees to save for retirement. This measure will do that, and, at the same time, it will help stimulate our nation's historically low savings rate," said Rep. Cardin.

    The Congressman pointed out that savings as percent of disposable income has steadily declined in the past decade. In 1992, the rate of savings was 8.7% of disposable income. Since then, the rate has dropped every year, reaching a low of -0.1% in 2000.

    The Joint Taxation Committee has said the bill will cost $51.7 billion over 10 years. The Portman/Cardin Bill originally passed the House in July 2000 by a 401-25 vote. A similar bill has been introduced in the Senate by Senate Finance Chairman Charles Grassley (R-IA) and Finance Committee member Robert Graham(D-FL).