[Congressional Record Volume 145, Number 51 (Wednesday, April 14, 1999)]
[House]
[Pages H2032-H2033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          RETIREMENT SECURITY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Ohio (Mr. Portman) is recognized for 5 minutes.
  Mr. PORTMAN. Mr. Speaker, I rise this evening to talk about an issue 
that is of crucial importance to all Americans, and that is security 
and peace of mind in our retirement years. It is an issue that is 
beginning to gain a lot more attention nationally. In fact, today 
President Clinton revealed his plans for so-called universal savings 
accounts, USA accounts, that would function much like private pension 
savings.
  Why has retirement savings become a bigger and bigger issue, taking 
more and more attention of this body and more and more attention at the 
Clinton administration? It is because we find ourselves in a retirement 
squeeze. Happily, Americans are living longer. That is a good thing. 
But we also have 76 million baby boomers, me included, who are going to 
begin retiring in really just a few short years. Neither our public 
retirement system, Social Security, nor our private pension system in 
this country, including 401(k) type plans and others, are ready for 
this retirement of the baby boom generation.
  In response to these challenges, Social Security's fiscal problems 
have become a top priority of this Congress, and that is appropriate. 
But we have to remember Social Security is only one component of a 
secure and comfortable retirement. Social Security actually was never 
meant to meet all the retirement needs of Americans, and for most 
Americans it does not. Rather, it is only one leg of a three-legged 
stool that supports Americans in their retirement years. The other two 
are personal savings, and then employer-provided retirement plans such 
as 401(k) plans, profit sharing plans, defined benefit plans and 
others.
  This third leg, pension savings, is crucial in giving Americans the 
peace of mind they need as they plan for their retirement years. And 
economists from across the ideological spectrum, right, left and down 
the middle, agree that the enhanced personal savings that comes from 
increased pensions are key to long-term economic growth and prosperity.
  But all is not well with our pension system. In fact, it is not well 
at all. Right now only half of American workers have any kind of 
pension at all. That means about 60 million American workers do not 
have access to one of the key components of a secure retirement. And 
far fewer than half of employees who work for small businesses have 
access to plans.
  In fact, only 19 percent of small businesses, those with 25 or fewer 
employees, have any kind of retirement savings plan at all, 401(k), 
profit sharing or anything. Why? Well, I think the main reason is that 
over the years pensions have become so costly to set up and administer 
that many small businesses simply cannot afford to offer them.
  Not enough workers have this pension coverage at the same time that 
our overall savings in this country is in sharp decline. The personal 
savings rate in this country, the amount of money people save for their 
retirement and for other needs, is at its lowest since 1933. Again, 76 
million baby boomers starting to retire in a few short years, yet 
studies show that older baby boomers have only about 40 percent of the 
savings that they will need to avoid a real drop in their standard of 
living after retirement.
  Mr. POMEROY. Mr. Speaker, will the gentleman yield?
  Mr. PORTMAN. I yield to the gentleman from South Dakota.
  Mr. POMEROY. The issue the gentleman is speaking to is one of the 
greatest problems facing this country. His leadership has been very 
significant. The legislation he has advanced I believe goes a long way 
to expanding retirement income security for Americans. I am proud to be 
a cosponsor.
  Mr. PORTMAN. I appreciate it. That leads me right into what I am 
about to talk about. The gentleman from North Dakota has been a leader 
on this for years, particularly on the issue of portability that I will 
get into in a second. I appreciate his comment.
  In fact we do have some solutions to this problem that we have laid 
out. I have joined with the gentleman from North Dakota and with the 
gentleman from Maryland (Mr. Cardin) to introduce what is called the 
Comprehensive Retirement Security and Pension Reform Act of 1999. We 
are committed to making the needed reforms to our Social Security 
system, of course. In fact, the gentleman from Maryland and I both 
serve on the Subcommittee on Social Security. But we are also committed 
to making these changes in the private pension system.

[[Page H2033]]

  We believe there is a need to increase overall retirement security, 
which must include leveraging of private sector dollars by expanding 
pensions. The Portman-Cardin bill knocks down barriers to savings by 
raising limits for all Americans, allowing Americans to set aside more 
of their earnings tax free. It untangles complex and irrational rules 
and cuts through red tape that burdens retirement plans and their 
participants, and it creates new incentives for small businesses to 
establish plans.
  The Portman-Cardin bill also allows a special catch-up contribution 
for older Americans who have been out of the workforce for a while 
perhaps, working in part-time positions, particularly important for 
working moms who have returned to the workforce after raising their 
children and want to have more of a nest egg for retirement. We also 
respond, as I mentioned earlier, to the new realities of a mobile 
workforce by allowing portability.
  If enacted, all these changes will expand retirement savings and make 
the difference between retirement subsistence and real retirement 
security for millions of Americans. I urge the Congress to focus on 
this issue and to address this problem through the Portman-Cardin bill 
and other legislation to reform and expand our private pension system.

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