[Congressional Record Volume 147, Number 59 (Thursday, May 3, 2001)]
[Extensions of Remarks]
[Page E720]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




IN SUPPORT OF THE COMPREHENSIVE RETIREMENT SECURITY AND PENSION REFORM 
                             ACT (H.R. 10)

                                 ______
                                 

                               speech of

                          HON. ANDER CRENSHAW

                               of florida

                    in the house of representatives

                         Wednesday, May 2, 2001

  Mr. CRENSHAW. Mr. Speaker, yesterday, I was proud to lend my strong 
support to critical tax relief legislation, the Comprehensive 
Retirement Security and Pension Reform Act.
  The American personal savings rate is negative for the first time in 
over 65 years. More than half of all workers have no idea how much 
money they and their families will need to live comfortably in 
retirement. Regrettably, many believe that Social Security is enough. 
But, it is not, and it was never meant to be.
  When Social Security was established, in the 1930s, it was meant to 
be one of three legs in a stool representing responsible retirement 
savings. A second leg was employer-provided pensions and the final leg 
was personal savings. In 2000, the average monthly Social Security 
benefit was $804. Social Security pays the average retiree only about 
40% of pre-retirement earnings. Experts estimate that you need 70-90% 
of your pre-retirement earnings to maintain your standard of living--
with lower-income workers represented at the high end of that range.
  Clearly, we need to do more to prepare for our futures. IRAs, 
401(k)s, and other tax-favored retirement plans are one way to do so. 
But, it's been more than 20 years since we increased the cap on how 
much money individuals can contribute to these accounts. We should do 
all we can to encourage people to take full advantage of this saving 
mechanism.
  H.R. 10 will gradually increase the annual IRA contribution limits to 
$5,000, increase the annual limit on salary contributions to 401(k) 
plans, and provide catch-up provisions so that those over 50--who will 
retire shortly--could begin to take these steps even sooner. 
Furthermore, H.R. 10 modernizes and simplifies pension laws so that 
small businesses can provide pension coverage for their employees. 
Currently, only one in five offers such a benefit, leaving many 
employees and their families without even an opportunity to save in 
this way.
  It's not every day that Congress conducts debate on such a 
commonsense measure. The broad bipartisan support this bill received in 
this body and amongst interested organizations is a testament to that 
fact. I encourage my colleagues in the Senate to vote in favor of this 
bill and to help workers all across the nation prepare reponsiby for 
their retirement.

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