[Congressional Record Volume 142, Number 74 (Thursday, May 23, 1996)]
[Extensions of Remarks]
[Pages E889-E890]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF ADMINISTRATION'S RETIREMENT PROTECTION ACT

                                 ______


                            HON. SAM GIBBONS

                               of florida

                    in the house of representatives

                         Thursday, May 23, 1996

  Mr. GIBBONS. Mr. Speaker, this bill we are introducing today is a 
good bill. It contains many provisions that will accomplish positive 
results in our retirement system. It will increase the number of 
families and individuals who can contribute to their retirement savings 
through an IRA by approximately 20 million. In addition, it will make 
retirement benefits available to approximately 10 million small 
businesses and their employees.
  There has been growing concern about the adequacy of the pool of 
retirement savings available for our aging baby-boom generation. Some 
studies have indicated that the members of this group are saving at 
only one-third the rate they will need to retire at a standard of 
living which is similar to their current standard. This legislation 
certainly will expand the opportunity for these workers to increase 
their retirement savings. Also, younger workers could begin saving for 
retirement at an earlier age under the optional waiver of the initial 
waiting period for qualification to participate in their employer's 
plan.
  In addition, the simplified 401(k) plan small businesses would be 
able to offer to their employees under this bill would allow many part-
time workers to set aside retirement funds. Under this provision, any 
worker who makes at least $5,000 for 2 consecutive years would be 
eligible. This would include many women who are in the work force on a 
part-time basis because of family responsibilities. Also, a great 
number of workers maintain part-time hours at some point in their 
careers for different reasons. This bill would allow them to

[[Page E890]]

continue to save for retirement. This is a major step in the right 
direction. I applaud this effort.
  Last year, the Republicans included a provision in their Balanced 
Budget Act which would have allowed employers to raid the retirement 
funds of their employees. President Clinton specifically mentioned that 
provision, among others, including Medicare and welfare, as a reason 
for vetoing the bill. This bill contains provisions that are designed 
to deter employers from engaging in such behavior. This emphasizes our 
strong commitment to protect and preserve the pensions of hard-working 
individuals.
  Another good feature of this bill is the provision that would ensure 
that workers of companies which go out of business or workers who left 
an employer many years earlier would be able to collect their 
retirement benefits from these employers through the Pension Benefit 
Corporation [PBGC]. PBGC will act as a clearinghouse for the terminated 
plans of these employers. This will help many of our workers who 
otherwise may have no other way of collecting these funds. This 
provision will have a very positive impact on many workers at a time 
when they need it most. I strongly support this effort.
  I have always supported portability in our pension system. I am very 
pleased to see that the administration will be taking additional steps 
to improve the ability of an employee to take his or her retirement 
account to a subsequent employer. I welcome this effort.
  In conclusion, I reiterate my support for this bill, and I look 
forward to working toward making its goals become reality.

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