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.

The Comprehensive Retirement Security and Pension Reform Act, HR 10, would increase the amount of money employees could contribute to retirement savings plans, including Individual Retirement Accounts(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. This legislation also would make it easier for employees who change jobs to "roll over" their pension funds into their new employer's plan or into an Individual Retirement Account.

"Private savings in our country are at historically low levels. A generation ago, Americans saved at a rate of 9 percent; by last year, the rate had fallen to 3.8 percent. The continued growth of our economy depends on our ability to invest, and our ability to invest depends on our willingness to save. This reform measure has three important goals: to encourage more employers to offer pension plans; to encourage Americans to save for their retirement, and to boost the nation's savings rate. We need to give the American people the opportunity to provide for a secure retirement. This bill will reform our current pension laws to make it easier for employers and employees to contribute to retirement plans," said Rep. Cardin.

"This bill marks a continuation of the effort we began with the pension simplification legislation signed into law in 1996," said Rep. Cardin. "We have begun to sweep away the complications and obstacles in the law that discourage the creation of new pension plans. This bill offers a broad array of new incentives to continue our work in this area."