Sam Johnson

Contact: McCall Cameron (202)225-4201

Washington, Nov 10, 2005 - At a pension bill markup on Capitol Hill today, U.S. Congressman Sam Johnson (3rd Dist.-Texas) urged swift passage of an initiative to create “phased retirement” so employees may collect retirement from their traditional defined benefit pension plan and work part time simultaneously after age 62.

“This is a victory for employees and employers – especially as we prepare for the retirement of the Baby Boomers,” said Johnson, referring to those born between 1946 and 1964.

Present law forbids pension plan distributions, but permits 401(k) distributions after age 59 ½. This prohibition has the effect of encouraging those who have traditional plans to go work for a competitor.

“With people living longer, healthier lives, the natural off-shoot of that is that they’re staying in the workforce longer. For many people though, they don’t want to continue to work full time. Phased retirement will allow older workers to maintain employee health plans, work reduced hours, and maintain their standard of living with pension distributions. It’s time for the common-sense idea of allowing people to collect a pension and a paycheck from the same employer,” continued Johnson. Johnson made the case for “phased retirement” at the pension bill markup in the Ways and Means Committee.

Johnson has built a name for himself on Capitol Hill for changing laws dealing with those who want to work and collect Social Security benefits beyond age 65. In 2000, Johnson defied the critics when he introduced legislation to repeal the “earnings limit” tax on seniors who wanted to work past retirement and collect Social Security benefits simultaneously. Then-President Clinton signed Johnson’s bill into law that year.

Present law allows people to collect Social Security at age 65 while working without additional taxes, thanks to Johnson’s efforts. However, they may not collect a pension and a paycheck from the same employer. This initiative would change that.

Currently, one may collect 401(k) and IRA distributions at 59½; “early” Social Security at 62; and full Social Security at 65.

Johnson represents portions of Dallas and Collin Counties.