Congressman Zach Wamp on Wednesday voted for a bill designed to help Americans save more for their retirement by increasing contributions limits in IRA and 401(k) plans.

"This change is one of the most important things we can do to make sure that 'baby boomers' now nearing retirement and other younger workers will be able to live safely and securely - free from financial worries - after they finish their careers," Wamp said. "Right now, fully half of American private sector workers are not covered by ANY pension plan. And only 20 percent of small businesses offer retirement plans. It is high time to raise contribution limits. In fact it has been 20 years since Congress has increased those levels for IRAs"

The bill, the "Comprehensive Retirement Security and Pension Reform Act" (H.R. 1102), passed the House on a 401 to 25 vote.

The measure includes these provisions:

Individual Retirement Accounts (IRAs): The current annual limit for IRA contributions, which was set at $2,000 in 1981, would gradually be increased to $5000. It would go to $3,000 in 2001, $4,000 in 2002 and $5,000 in 2003. After that the limit would be indexed for inflation. Taxpayers age 50 and above would be permitted to contribute $5,000 to an IRA immediately beginning in 2001. These "catch-up" contributions would enable older taxpayers to more fully prepare for retirement.

Increased Pension Contributions: The limit on salary reduction contributions to 401(k)-type plans would be increased to $15,000 by 2005; and the limit on an employer?s deduction for contributions to certain types of defined contribution plans would be raised to 20 percent of compensation.

Catch-up Pension Contributions: Up to $5,000 in additional salary reduction "catch-up" contributions for workers age 50 and above would be permitted for 401(k)-type plans.

Faster Vesting and Pension Portability: The vesting requirements for employer matching contributions would be reduced from five to three years. Additionally, pensions would be made portable so workers could more easily roll over retirement plan assets when they change jobs.

Regulatory Relief to Encourage Small Business Pension Growth: Pension laws would be modernized and streamlined to encourage small businesses to offer pension plans.