In his ongoing effort to ease financial burdens on working families, Congressman Zach Wamp voted today to give workers the option of saving more of their salaries for retirement, college expenses or other priorities.

"This reform is not about wealthy people padding their nest eggs; it will affect all working families and individuals who want to plan for their futures. Many folks depend on 401(K) accounts or IRA funds not only for retirement but also for the purchase of that first home or a child's college expenses. If people choose to save more, they should be able to do that. It is, in fact their money," said Wamp.

The Comprehensive Security and Pension Reform Act will raise the amount of money that can be put into tax-favored retirement plans, such as 401(K) and IRA accounts. The current IRA contribution amount of $2000 would be increased to $5000 over the next three years. The current level of salary reduction contributions for 401(K) accounts would be increased to $15,000 by 2005.

This legislation also has a "catch-up" provision that would allow workers over 50 to contribute $5000 a year immediately.

"The catch-up provision is especially beneficial to women who are re-entering the workforce after taking time off to raise families and it allows older taxpayers added security as they prepare to retire," said Wamp.

Another component of the Comprehensive Security and Pension Reform Act would allow for faster vesting and greater pension portability when an employee changes jobs.