[Congressional Record Volume 151, Number 129 (Thursday, October 6, 2005)]
[Senate]
[Pages S11214-S11219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KOHL (for himself and Mr. Durbin):
  S. 1826. A bill to amend the Internal Revenue Code of 1986 to allow a 
credit to encourage employers to offer flexible and phased work 
opportunities to older workers, to expand the credit for dependent care 
expenses to cover eldercare expenses, to extend COBRA coverage for 
certain older workers who lose health insurance coverage due to a 
reduction in work, to improve older workers' access to job training 
services, and for other purposes; to the Committee on Finance.
  Mr. KOHL. Mr. President, I rise today to discuss an issue that will 
greatly affect our Nation's aging population, workforce, and economy: 
the need to expand opportunities for older Americans to continue 
working into their later years if they so choose.
  As older Americans live longer and healthier lives, many are planning 
to work longer. According to a recent survey, 80 percent of baby 
boomers expect to work past traditional retirement age. Some may 
recognize the physical and mental benefits of work, while some may need 
the additional income to remain financially secure. Whatever the reason 
people decide to stay on the job, it's time to change the way our 
Nation thinks about retirement. A one-size-fits-all retirement will no 
longer match the very different plans that seniors and baby boomers 
have for their later years.
  Rethinking retirement is also vital to our Nation's economic future. 
By 2030, businesses could face a labor force shortage of 35 million 
workers, and the projected slowdown in labor force growth could 
translate into lower economic growth and living standards. However, we 
can soften the potentially serious impact of these trends if we develop 
policies that expand opportunities for older Americans to work longer.
  Today, we are taking a first step by introducing The Older Worker 
Opportunity Act. This legislation addresses a variety of issues that 
affect older workers and employers: workplace flexibility, pensions, 
health insurance coverage, job training, and caregiving needs. Back in 
April, as ranking member of the Aging Committee, I chaired a hearing on 
older workers which identified barriers and disincentives to working 
longer. This legislation specifically targets those.
  First, today's workplace rarely offers flexible and part-time work 
arrangements for older workers. Most older workers would choose to work 
past traditional retirement age, but would prefer to gradually 
transition into retirement instead of fully retiring at a traditional 
retirement age.
  To encourage employers to offer flexible and part-time work 
arrangements, we propose a tax credit for employers that give their 
older workers such opportunities while protecting them from the loss of 
health or pension benefits. Our aim is to encourage more workplace 
flexibility, which would benefit both older workers and employers 
through increased productivity and job retention.
  Second, the bill provides an extra safety net for older workers who 
reduce their work but whose employers do not keep them on their health 
plan. In those cases, of course, the employer would not qualify for the 
tax credit we are offering. However, we would extend COBRA coverage 
from 18 to 36 months for their workers from the age of 62 until they 
are eligible for Medicare.
  Third, one major reason why older workers exit the workforce is the 
need to care for aging family members. Older workers who are also 
caregivers often face a significant loss of earnings and retirement 
income, and their employers lose up to $29 billion per year in lost 
work time and productivity. To help older workers balance the demands 
of work and caregiving, and to help employers by increasing 
productivity and reducing turnover costs, we propose expanding the 
dependent care credit to cover the care of chronically ill family 
members.
  Fourth, as GAO has found, job training programs are often discouraged

[[Page S11215]]

from enrolling older workers because their effectiveness is measured in 
part by participants' earnings. Older workers tend to seek part-time 
work and receive lower earnings when they get new jobs. As a result, 
older workers do not have access to the training services they need to 
develop their technological skills and increase their productivity. We 
propose adjusting older workers' lower earnings when measuring the 
success of job training programs in order to more accurately reflect 
the value of job training programs to the older workforce. We also ask 
states to collect more data on the success of our current job training 
programs in meeting the unique needs of older workers.
  Fifth, it is clear that the barriers this bill addresses are not the 
only barriers facing older workers. This bill is just the beginning. 
Therefore, we propose a ``Task Force on Older Workers,'' composed of 
experts from all relevant federal agencies, to further identify 
barriers and disincentives in current law, and recommend solutions.
  We face an historic challenge, and with it, an historic opportunity. 
We need a 21st century workplace that is a win-win for both older 
workers and their employers--and an effective strategy for retaining 
our competitive advantage against other countries facing the same 
demographic tidal wave. We need to usher in a new age of work and 
retirement in which seniors are not limited to a choice between one or 
the other. We need to empower seniors to make the continued 
contributions we all know they can to our economy and our communities.
  Many older Americans and employers have already begun to pave the 
way. More older Americans are willing and able to continue making a 
contribution to the workplace and our economy, and more employers are 
beginning to recognize the value of older workers. We must incorporate 
this new mindset into our national culture, and develop policies that 
reflect this reality. Our seniors deserve it, and our economic future 
may well depend on it.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record, and that the attached letters of endorsement 
also be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1826

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Older 
     Worker Opportunity Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--TAX INCENTIVES

Sec. 101. Tax credit for older workers in flexible and phased work 
              programs.
Sec. 102. Expansion of dependent care credit to eldercare expenses.

                 TITLE II--COBRA CONTINUATION COVERAGE

Sec. 201. Extended COBRA continuation coverage for certain older 
              workers.

                   TITLE III--EMPLOYMENT AND TRAINING

Sec. 301. Definitions.
Sec. 302. Statewide employment and training activities.
Sec. 303. Local employment and training activities.
Sec. 304. Performance measures.
Sec. 305. Reporting.
Sec. 306. Incentive grants.

             TITLE IV--FEDERAL TASK FORCE ON OLDER WORKERS

Sec. 401. Federal task force on older workers.

                        TITLE I--TAX INCENTIVES

     SEC. 101. TAX CREDIT FOR OLDER WORKERS IN FLEXIBLE AND PHASED 
                   WORK PROGRAMS.

       (a) Congress finds that--
       (1) most older workers expect to work past traditional 
     retirement age;
       (2) most older workers would prefer not to work a 
     traditional full-time schedule;
       (3) older workers' preference for flexible and phased work 
     is not matched by opportunities currently offered by 
     employers;
       (4) many older workers would choose to work longer if they 
     were offered flexible and phased work opportunities, which 
     would also reduce employer costs by increasing employee 
     retention; and
       (5) many older workers would like to gradually transition 
     into retirement instead of taking full retirement 
     immediately.
       (b) Flexible and Phased Work Credit.--Subpart D of part IV 
     of subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 (relating to business related credits) is amended by 
     adding at the end the following new section:

     ``SEC. 45N. FLEXIBLE AND PHASED WORK CREDIT.

       ``(a) In General.--For purposes of section 38, in the case 
     of an eligible employer, the flexible and phased work credit 
     determined under this section for the taxable year shall be 
     equal to 40 percent of the qualified wages for such year.
       ``(b) Eligible Employer.--For purposes of this section, the 
     term `eligible employer' means an employer which--
       ``(1) maintains a qualified trust (within the meaning of 
     section 401(a)), and
       ``(2) provides health insurance coverage (as defined in 
     section 9832(b)(1)(A)) to employees and pays no less than 60 
     percent of the cost of such health insurance coverage with 
     respect to each full-time employee receiving such coverage.
       ``(c) Qualified Wages Defined.--For purposes of this 
     section--
       ``(1) Qualified wages.--The term `qualified wages' means 
     the wages paid or incurred by an eligible employer during the 
     taxable year to individuals whom at the time such wages are 
     paid or incurred--
       ``(A) have attained the age of 59\1/2\, and
       ``(B) are participating in a formal flexible work program 
     or a formal phased work program.
       ``(2) Wages.--
       ``(A) In general.--The term `wages' has the meaning given 
     such term by subsection (b) of section 3306 (determined 
     without regard to any dollar limitation contained in such 
     section).
       ``(B) Other rules.--Rules similar to the rules of paragraph 
     (2) and (3) of section 51(c) shall apply for purposes of this 
     section.
       ``(C) Termination.--The term `wages' shall not include any 
     amount paid or incurred to an individual after December 31, 
     2010.
       ``(3) Only first $6,000 of wages per year taken into 
     account.--The amount of the qualified wages which may be 
     taken into account with respect to any individual shall not 
     exceed $6,000 per year.
       ``(d) Formal Flexible Work Program.--For purposes of this 
     section--
       ``(1) In general.--The term `formal flexible work program' 
     means a program of an eligible employer--
       ``(A) which consists of core time and flex time,
       ``(B) under which core time does not exceed--
       ``(i) 20 hours per week,
       ``(ii) 3 days per week, or
       ``(iii) 1,000 hours per year, and
       ``(C) which meets the requirements of subsection (f).
       ``(2) Core time.--The term `core time' means the specific 
     time--
       ``(A) during which an employee is required to perform 
     services related to employment, and
       ``(B) which is determined by the employer.
       ``(3) Flex time.--The term `flex time' means the time other 
     than core time--
       ``(A) during which an employee is required to perform 
     services related to employment, and
       ``(B) which is determined at the election of the employee.
       ``(e) Formal Phased Work Program.--For purposes of this 
     section, the term `formal phased work program' means--
       ``(1) a program of an eligible employer--
       ``(A) under which the employer and an employee enter into 
     an agreement, in good faith, that the employee's work 
     schedule will be no more than 80 percent of the work schedule 
     of a similarly situated full-time employee, and
       ``(B) which meets the requirements of subsection (f), or
       ``(2) any phased retirement program of an eligible employer 
     which--
       ``(A) is authorized by the Secretary, and
       ``(B) meets the requirements of subsection (f).
       ``(f) Requirements.--A program shall not be considered a 
     formal flexible work program or a formal phased work program 
     under this section unless such program meets the following 
     requirements:
       ``(1) Duration of program.--The program shall allow for 
     participation for a period of at least 1 year.
       ``(2) No change in health benefits.--With respect to a 
     participant whose work schedule is no less than 20 percent of 
     the work schedule of a similarly situated full-time 
     employee--
       ``(A) such participant shall be entitled to the same health 
     insurance coverage to which a similarly situated full-time 
     employee would be entitled,
       ``(B) the employer shall contribute the same percentage of 
     the cost of health insurance coverage for such participant as 
     the employer would contribute for a similarly situated full-
     time employee, and
       ``(C) such participant shall be entitled to participate in 
     a retiree health benefits plan of the employer in the same 
     manner as a similarly situated full-time employee, except 
     that service credited under the plan for any plan year shall 
     be equal to the ratio of the participant's work schedule 
     during such year to the work schedule of a similarly situated 
     full-time employee during such year.
       ``(3) No reduction in pension benefits.--
       ``(A) Defined benefit plans.--
       ``(i) A participant shall be entitled to participate in a 
     defined benefit plan (within the meaning of section 414(j)) 
     of the employer in the same manner as a similarly situated 
     full-time employee.
       ``(ii) Service credited to a participant under the plan for 
     any plan year shall be equal to the ratio of the 
     participant's work

[[Page S11216]]

     schedule during such year to the work schedule of a similarly 
     situated full-time employee during such year.
       ``(iii) If the plan uses final average earnings to 
     determine benefits, final average earnings of the participant 
     shall be no less than such earnings were before the 
     participant entered the program.
       ``(B) Defined contribution plans.--A participant shall be 
     entitled to participate in a defined contribution plan 
     (within the meaning of section 414(i)) of the employer in the 
     same manner as a similarly situated full-time employee, and 
     the employer shall match the participant's contributions at 
     the same rate that the employer would match the contributions 
     of a similarly situated full-time employee.
       ``(C) No forfeiture of pension benefits.--The pension 
     benefits of a participant shall not be forfeited under the 
     rules of section 411(a)(3)(B) or section 203(a)(3)(B) of the 
     Employee Retirement Income Security Act of 1974 with respect 
     to a participant who has attained normal retirement age as of 
     the end of the plan year.
       ``(4) Nondiscrimination rule.--Eligibility to participate 
     in the program shall not discriminate in favor of highly 
     compensated employees (within the meaning of section 414(q)).
       ``(g) Certain Individuals Ineligible.--For purposes of this 
     section, rules similar to the rules of paragraphs (1) and (2) 
     of section 51(i) and section 52 shall apply.
       ``(h) Regulations.--The Secretary may prescribe such 
     regulations as are necessary to carry out the purposes of 
     this section, including simplified rules to satisfy the 
     requirements of subsection (f)(3)(C) taking into account the 
     requirements of section 411 and section 203 of the Employee 
     Retirement Income Security Act of 1974.''.
       (c) Credit Made Part of General Business Credit.--
     Subsection (b) of section 38 of the Internal Revenue Code of 
     1986 is amended by striking ``and'' at the end of paragraph 
     (25), by striking the period at the end of paragraph (26) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(27) the flexible and phased work credit determined under 
     section 45N(a).''.
       (d) No Double Benefit.--Subsection (a) of section 280C of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``45N(a),'' after ``45A(a),''.
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 45N. Flexible and phased work credit.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to wages paid after December 31, 2005.

     SEC. 102. EXPANSION OF DEPENDENT CARE CREDIT TO ELDERCARE 
                   EXPENSES.

       (a) In General.--Paragraph (1) of section 21(b) of the 
     Internal Revenue Code of 1986 (relating to qualifying 
     individual) is amended by striking ``or'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, or'', and by adding at the 
     end the following new subparagraph:
       ``(D) an individual who--
       ``(i) has attained retirement age (as defined in section 
     216(l)(1) of the Social Security Act) before the end of the 
     taxable year of the taxpayer,
       ``(ii) is the spouse of the taxpayer or has a relationship 
     to the taxpayer described in subparagraph (B), (C), (D), (F), 
     or (G) of section 152(d)(2), and
       ``(iii) is a chronically ill individual (within the meaning 
     of section 7702B(c)(2)).''.
       (b) Expenses for Care Outside of Household.--
       (1) In general.--Subparagraph (B) of section 21(b)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``or'' at the end of clause (i), by redesignating clause (ii) 
     as clause (iii), and by inserting after clause (i) the 
     following new clause:
       ``(ii) a qualifying individual described in paragraph 
     (1)(D), or''.
       (2) Conforming amendment.--Clause (iii) of section 
     21(b)(2)(B), as redesignated by paragraph (1), is amended by 
     striking ``paragraph (1)(A)'' and inserting ``subparagraph 
     (A) or (D) of paragraph (1)''.
       (c) Conforming Amendments.--
       (1) The heading of section 21 of the Internal Revenue Code 
     of 1986 is amended by striking ``AND DEPENDENT CARE 
     SERVICES'' and inserting ``, DEPENDENT CARE, AND ELDERCARE 
     SERVICES''.
       (2) The item relating to section 21 in the table of 
     sections for subpart A of part IV of subchapter A of chapter 
     1 of such Code is amended striking ``and dependent care 
     services'' and inserting ``, dependent care, and eldercare 
     services''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

                 TITLE II--COBRA CONTINUATION COVERAGE

     SEC. 201. EXTENDED COBRA CONTINUATION COVERAGE FOR CERTAIN 
                   OLDER WORKERS.

       (a) Amendments to the Employee Retirement Income Security 
     Act of 1974.--Section 602 of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1162) is amended--
       (1) in paragraph (2)(A), by adding at the end the 
     following:
       ``(vi) Special rule for certain older workers.--

       ``(I) In general.--Notwithstanding any other provision of 
     this subparagraph, in the case of a qualifying event 
     described in section 603(2) relating to a reduction of hours 
     of an employee described in subclause (II), the date which is 
     36 months after the date of the qualifying event, except that 
     the period of coverage under this clause shall end on the 
     date on which the employee becomes entitled to benefits under 
     title XVIII of the Social Security Act based on age.
       ``(II) Employee described.--An employee is described in 
     this subclause if such employee, on the date of the 
     qualifying event, is at least the early retirement age (as 
     defined in section 216(l)(2) of the Social Security Act) but 
     not yet entitled to benefits under title XVIII of the Social 
     Security Act based on age.''; and

       (2) in paragraph (3), by adding at the end the following: 
     ``In the case of an individual described in paragraph 
     (2)(A)(vi), any reference in subparagraph (A) of this 
     paragraph to `102 percent' is deemed a reference to `120 
     percent' for any month after the 18th month of continuation 
     coverage provided for under such paragraph (2)(A)(vi).''.
       (b) Amendments to the Public Health Service Act.--Section 
     2202 of the Public Health Service Act (42 U.S.C. 300bb-2) is 
     amended--
       (1) in paragraph (2)(A), by inserting after clause (iv) the 
     following:
       ``(v) Special rule for certain older workers.--

       ``(I) In general.--Notwithstanding any other provision of 
     this subparagraph, in the case of a qualifying event 
     described in section 2203(2) relating to a reduction of hours 
     of an employee described in subclause (II), the date which is 
     36 months after the date of the qualifying event, except that 
     the period of coverage under this clause shall end on the 
     date on which the employee becomes entitled to benefits under 
     title XVIII of the Social Security Act based on age.
       ``(II) Employee described.--An employee is described in 
     this subclause if such employee, on the date of the 
     qualifying event, is at least the early retirement age (as 
     defined in section 216(l)(2) of the Social Security Act) but 
     not yet entitled to benefits under title XVIII of the Social 
     Security Act based on age.''; and

       (2) in paragraph (3), by adding at the end the following: 
     ``In the case of an individual described in paragraph 
     (2)(A)(v), any reference in subparagraph (A) of this 
     paragraph to `102 percent' is deemed a reference to `120 
     percent' for any month after the 18th month of continuation 
     coverage provided for under such paragraph (2)(A)(v).''.
       (c) Amendments to the Internal Revenue Code of 1986.--
     Section 4980B(f) of the Internal Revenue Code of 1986 is 
     amended--
       (1) in paragraph (2)(B)(i), by inserting after subclause 
     (V) the following:

       ``(VI) Special rule for certain older workers.--

       ``(aa) In general.--Notwithstanding any other provision of 
     this clause, in the case of a qualifying event described in 
     paragraph (3)(B) relating to a reduction of hours of an 
     employee described in item (bb), the date which is 36 months 
     after the date of the qualifying event, except that the 
     period of coverage under this clause shall end on the date on 
     which the employee becomes entitled to benefits under title 
     XVIII of the Social Security Act based on age.
       ``(bb) Employee described.--An employee is described in 
     this subclause if such employee, on the date of the 
     qualifying event, is at least the early retirement age (as 
     defined in section 216(l)(2) of the Social Security Act) but 
     not yet entitled to benefits under title XVIII of the Social 
     Security Act based on age.''; and
       (2) in paragraph (2)(C) by adding at the end the following: 
     ``In the case of an individual described in subparagraph 
     (B)(i)(VI), any reference in clause (i) of this subparagraph 
     to `102 percent' is deemed a reference to `120 percent' for 
     any month after the 18th month of continuation coverage 
     provided for under such subparagraph (B)(i)(VI).''.

                   TITLE III--EMPLOYMENT AND TRAINING

     SEC. 301. DEFINITIONS.

       Section 101 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801) is amended--
       (1) by redesignating paragraphs (17) through (53) as 
     paragraphs (18) through (54), respectively; and
       (2) by inserting after paragraph (16) the following:
       ``(17) Hard-to-serve populations.--The term `hard-to-serve 
     populations' means populations of individuals who are hard to 
     serve, including displaced homemakers, low-income 
     individuals, Native Americans, individuals with disabilities, 
     older individuals, ex-offenders, homeless individuals, 
     individuals with limited English proficiency, individuals who 
     do not meet the definition of literacy in section 203, 
     individuals facing substantial cultural barriers, migrant and 
     seasonal farmworkers, individuals within 2 years of 
     exhausting lifetime eligibility under part A of title IV of 
     the Social Security Act (42 U.S.C. 601 et seq.), single 
     parents (including single pregnant women), and such other 
     groups as the Governor determines to be hard to serve.''.

     SEC. 302. STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.

       Section 134(a)(3)(A) of such Act (29 U.S.C. 2864 (a)(3)(A)) 
     is amended--
       (1) in clause (vi), by striking ``and'' at the end;
       (2) by redesignating clause (vii) as clause (viii); and

[[Page S11217]]

       (3) by inserting after clause (vi) the following:
       ``(vii) developing strategies for effectively serving hard-
     to-serve populations and for coordinating programs and 
     services among one-stop partners; and''.

     SEC. 303. LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.

       (a) Intensive Services.--Section 134(d)(3) of such Act (29 
     U.S.C. 2864(d)(3)) is amended by striking subparagraph (A) 
     and inserting the following:
       ``(A) In general.--
       ``(i) Eligibility.--Except as provided in clause (iii), 
     funds allocated to a local area for adults under paragraph 
     (2)(A) or (3), as appropriate, of section 133(b), and funds 
     allocated to the local area for dislocated workers under 
     section 133(b)(2)(B), shall be used to provide intensive 
     services to adults and dislocated workers, respectively--

       ``(I) who are unemployed and who, after an interview, 
     evaluation, or assessment, have been determined by a one-stop 
     operator or one-stop partner to be--

       ``(aa) unlikely or unable to obtain employment, that leads 
     to self-sufficiency or wages comparable to or higher than 
     previous employment, through core services described in 
     paragraph (2); and
       ``(bb) in need of intensive services to obtain employment 
     that leads to self-sufficiency or wages comparable to or 
     higher than previous employment; or

       ``(II) who are employed, but who, after an interview, 
     evaluation, or assessment, are determined by a one-stop 
     operator or one-stop partner to be in need of intensive 
     services to obtain or retain employment that leads to self-
     sufficiency.

       ``(ii) Consideration.--For purposes of determining whether 
     an adult or dislocated worker meets the requirements of 
     clause (i)(I)(aa), a one-stop operator or one-stop partner 
     shall consider whether the adult or dislocated worker is a 
     member of a hard-to-serve population.
       ``(iii) Special rule.--A new interview, evaluation, or 
     assessment of a participant is not required under clause (i) 
     if the one-stop operator or one-stop partner determines that 
     it is appropriate to use a recent assessment of the 
     participant conducted pursuant to another education or 
     training program.''.
       (b) Training Services.--Section 134(d)(4) of such Act (29 
     U.S.C. 2864(d)(4)) is amended by striking subparagraph (A) 
     and inserting the following:
       ``(A) In general.--
       ``(i) Eligibility.--Except as provided in clause (iii), 
     funds allocated to a local area for adults under paragraph 
     (2)(A) or (3), as appropriate, of section 133(b), and funds 
     allocated to the local area for dislocated workers under 
     section 133(b)(2)(B), shall be used to provide training 
     services to adults and dislocated workers, respectively--

       ``(I) who, after an interview, evaluation, or assessment, 
     and case management, have been determined by a one-stop 
     operator or one-stop partner, as appropriate, to--

       ``(aa) be unlikely or unable to obtain or retain 
     employment, that leads to self-sufficiency or wages 
     comparable to or higher than previous employment, through the 
     intensive services described in paragraph (3);
       ``(bb) be in need of training services to obtain or retain 
     employment that leads to self-sufficiency or wages comparable 
     to or higher than previous employment; and
       ``(cc) have the skills and qualifications to successfully 
     participate in the selected program of training services;

       ``(II) who select programs of training services that are 
     directly linked to the employment opportunities in the local 
     area or region involved or in another area to which the 
     adults or dislocated workers are willing to commute or 
     relocate;
       ``(III) who meet the requirements of subparagraph (B); and
       ``(IV) who are determined to be eligible in accordance with 
     the priority system in effect under subparagraph (E).

       ``(ii) Consideration.--For purposes of determining whether 
     an adult or dislocated worker meets the requirements of 
     clause (i)(I)(aa), a one-stop operator or one-stop partner 
     shall consider whether the adult or dislocated worker is a 
     member of a hard-to-serve population.
       ``(iii) Special rule.--A new interview, evaluation, or 
     assessment of a participant is not required under clause (i) 
     if the one-stop operator or one-stop partner determines that 
     it is appropriate to use a recent assessment of the 
     participant conducted pursuant to another education or 
     training program.''.
       (c) Local Employment and Training Activities.--Section 
     134(e)(1)(A) of such Act (29 U.S.C. 2864(e)(1)(A)) is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) customer support to enable members of hard-to-serve 
     populations, including individuals with disabilities, to 
     navigate among multiple services and activities for such 
     populations.''.

     SEC. 304. PERFORMANCE MEASURES.

       (a) State Performance Measures.--Section 
     136(b)(3)(A)(iv)(II) of the Workforce Investment Act of 1998 
     (29 U.S.C. 2871(b)(3)(A)(iv)(II)) is amended--
       (1) by striking ``taking into account'' and inserting ``and 
     shall ensure that the levels involved are adjusted, using 
     objective statistical methods, based on'';
       (2) by inserting ``(such as differences in unemployment 
     rates and job losses or gains in particular industries)'' 
     after ``economic conditions''; and
       (3) by inserting ``(such as indicators of poor work 
     history, lack of work experience, lack of educational or 
     occupational skills attainment, dislocation from high-wage 
     and benefit employment, low levels of literacy or English 
     proficiency, disability status, older individual status, 
     homelessness, ex-offender status, and welfare dependency)'' 
     after ``program''.
       (b) Local Performance Measures.--Section 136(c)(3) (29 
     U.S.C. 2871(c)(3))--
       (1) by striking ``shall take into account'' and inserting 
     ``shall ensure that the levels involved are adjusted, using 
     objective statistical methods, based on'';
       (2) by inserting ``(characteristics such as unemployment 
     rates and job losses or gains in particular industries)'' 
     after ``economic''; and
       (3) by inserting ``(characteristics such as indicators of 
     poor work history, lack of work experience, lack of 
     educational and occupational skills attainment, dislocation 
     from high-wage and benefit employment, low levels of literacy 
     or English proficiency, disability status, older individual 
     status, homelessness, ex-offender status, and welfare 
     dependency)'' after ``demographic''.
       (c) Wage Records and Documented Data.--Section 136(f)(2) of 
     such Act (29 U.S.C. 2871(f)(2)) is amended--
       (1) by striking ``(2)'' and all that follows through ``In'' 
     and inserting the following:
       ``(2) Wage records and documented data.--
       ``(A) Wage records.--In''; and
       (2) by adding at the end the following:
       ``(B) Documented data.--In measuring the progress of the 
     State with respect to older individuals on State and local 
     performance measures relating to earnings, a State may use 
     documented data other than quarterly wage records to 
     determine the work schedule of the older individuals, and may 
     impute full-time earnings to part-time workers who are older 
     individuals.''.

     SEC. 305. REPORTING.

       Section 136(d)(2) of such Act (29 U.S.C. 2871(d)(2)) is 
     amended--
       (1) in subparagraph (E), by striking ``(excluding 
     participants who received only self-service and informational 
     activities)''; and
       (2) in subparagraph (F)--
       (A) by striking ``(F)'' and inserting ``(F)(i)'';
       (B) by striking the period and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(ii) the number of participants in each of the groups 
     described in clause (i) who have received services authorized 
     under this title, in the form of core services described in 
     section 134(d)(2), intensive services described in section 
     134(d)(3), training services described in section 134(d)(4), 
     and followup services, respectively;''.

     SEC. 306. INCENTIVE GRANTS.

       (a) Use of Funds for Statewide Employment and Training 
     Activities.--Section 134(a)(2)(B) of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2864(a)(2)(B)) is amended--
       (1) in clause (v), by striking ``and'' at the end;
       (2) in clause (vi), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(vii) providing incentive grants to local areas, in 
     accordance with section 136(j).''.
       (b) Incentive Grants for Local Areas.--Section 136 of such 
     Act is amended by adding at the end the following:
       ``(j) Incentive Grants for Local Areas.--
       ``(1) In general.--From funds reserved under sections 
     128(a) and 133(a)(1), the Governor involved shall award 
     incentive grants to local areas for performance described in 
     paragraph (2) in carrying out programs under chapters 4 and 
     5.
       ``(2) Basis.--The Governor shall award the grants on the 
     basis that the local areas--
       ``(A) have exceeded the performance measures established 
     under subsection (c)(2) relating to indicators described in 
     subsection (b)(3)(A)(iii); or
       ``(B) have--
       ``(i) met the performance measures established under 
     subsection (c)(2) relating to indicators described in 
     subsection (b)(3)(A)(iii); and
       ``(ii) demonstrated exemplary performance in the State in 
     serving hard-to-serve populations.
       ``(3) Use of funds.--The funds awarded to a local area 
     under this subsection may be used to carry out activities 
     authorized for local areas and such innovative projects or 
     programs that increase coordination and enhance service to 
     program participants, particularly hard-to-serve populations, 
     as may be approved by the Governor.''.
       (c) Incentive Grants for States.--Section 503 of the 
     Workforce Investment Act of 1998 (20 U.S.C. 9273) is 
     amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--
       ``(1) Timeline.--
       ``(A) Prior to july 1, 2006.--Prior to July 1, 2006, the 
     Secretary shall award a grant to each State in accordance 
     with the provisions of this section as this section was in 
     effect on July 1, 2003.
       ``(B) Beginning july 1, 2006.--Beginning on July 1, 2006, 
     the Secretary shall award incentive grants to States for 
     performance described in paragraph (2) in carrying out 
     innovative programs consistent with the programs under 
     chapters 4 and 5 of subtitle B of

[[Page S11218]]

     title I, to implement or enhance innovative and coordinated 
     programs consistent with the statewide economic, workforce, 
     and educational interests of the State.
       ``(2) Basis.--The Secretary shall award the grants on the 
     basis that States--
       ``(A) have exceeded the State adjusted levels of 
     performance for title I, the adjusted levels of performance 
     for title II, and the levels of performance under the Carl D. 
     Perkins Vocational and Technical Education Act of 1998 (20 
     U.S.C. 2301 et seq.); or
       ``(B) have--
       ``(i) met the State adjusted levels of performance for 
     title I, the adjusted levels of performance for title II, and 
     the levels of performance under the Carl D. Perkins 
     Vocational and Technical Education Act of 1998 (20 U.S.C. 
     2301 et seq.); and
       ``(ii) demonstrated exemplary performance in serving hard-
     to-serve populations.
       ``(3) Use of funds.--The funds awarded to a State under 
     this section may be used to carry out activities authorized 
     for States under chapters 4 and 5 of subtitle B of title I, 
     title II, and the Carl D. Perkins Vocational and Technical 
     Education Act of 1998 (20 U.S.C. 2301 et seq.), including 
     demonstration projects, and for such innovative projects or 
     programs that increase coordination and enhance service to 
     program participants, particularly hard-to-serve 
     populations.''; and
       (2) in subsection (b)(2), by striking subparagraph (C) and 
     inserting the following:
       ``(C) the State meets the requirements of subparagraph (A) 
     or (B) of subsection (a)(2).''.

             TITLE IV--FEDERAL TASK FORCE ON OLDER WORKERS

     SEC. 401. FEDERAL TASK FORCE ON OLDER WORKERS.

       (a) Establishment.--Not later than 90 days after the date 
     of enactment of this Act, the Secretary of Labor shall 
     establish a Federal Task Force on Older Workers (referred to 
     in this Act as the ``Task Force'').
       (b) Membership.--The Task Force established pursuant to 
     subsection (a) shall be composed of representatives from all 
     relevant Federal agencies that have regulatory jurisdiction 
     over, or a clear policy interest in, issues relating to older 
     workers, including the Internal Revenue Service, the Social 
     Security Administration, the Equal Employment Opportunity 
     Commission, and the Administration on Aging of the Department 
     of Health and Human Services.
       (c) Activities.--
       (1) After one year.--Not later than 1 year after the date 
     of establishment of the Task Force, the Task Force shall--
       (A) identify statutory and regulatory provisions in current 
     law that tend to limit opportunities for older workers, and 
     develop legislative and regulatory proposals to address such 
     limitations;
       (B) identify best practices in the private sector for 
     hiring and retaining older workers, and serve as a 
     clearinghouse of such information; and
       (C) assess the effectiveness and cost of programs that 
     Federal agencies have implemented to hire and retain older 
     workers (including the Senior Environmental Employment (SEE) 
     Program of the Environmental Protection Agency), and 
     recommend cost-effective programs for all Federal agencies to 
     hire and retain older workers.
       (2) After three years.--Not later than 3 years after the 
     date of establishment of the Task Force, the Task Force 
     shall--
       (A) assess the effectiveness of the provisions of this Act; 
     and
       (B) organize a Conference on the Aging Workforce, which 
     shall include the participation of senior, business, labor, 
     and other interested organizations.
       (3) Report.--The Task Force shall submit a report to 
     Congress on the activities of the Task Force pursuant to 
     paragraph (1). Such report shall be made available to the 
     public.
       (d) Consultation.--In carrying out activities pursuant to 
     this section, the Task Force shall consult with senior, 
     business, labor, and other interested organizations.
       (e) Applicability of FACA; Termination of Task Force.--
       (1) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
     App.) shall not apply to the Task Force established pursuant 
     to this Act.
       (2) Termination.--The Task Force shall terminate 30 days 
     after the date the Task Force completes all of its duties 
     under this Act.
                                  ____



                                                   Interfaith,

                                Milwaukee, WI, September 29, 2005.
     Hon. Herb Kohl,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Kohl: It is a privilege to support Senator 
     Kohl's proposed ``Older Worker Opportunity Act of 2005.'' As 
     an agency that has been providing employment services to 
     older workers for over 25 years, Interfaith Older Adult 
     Programs has first hand knowledge of the value of retaining 
     older workers in the workplace. As stated in the Act, our 
     country is facing a great labor shortage. Terry Ludeman, 
     Chief Economist for the State of Wisconsin, has estimated 
     that in our State by 2017 there will not be enough 18-year-
     olds to replace workers turning 65.
       The proposed tax credit would provide incentive to 
     encourage employers to offer more flexibility in the 
     workplace and encourage support for older individuals who 
     want to stay in the workforce longer. It will also allow 
     work/life balance that is a very important value to 
     individuals as they age.
       Extended COBRA coverage would also be a great encouragement 
     to mature workers wanting to cut back but not leave the 
     workforce. Providing the extended COBRA might be just the 
     incentive a 62-year-old needs to continue working part time. 
     The extended COBRA could help employers and older workers 
     transition gradually to full retirement at a later age.
       A tax credit for eldercare would be a wonderful benefit to 
     seniors that are balancing the responsibilities of work and 
     taking care of a non-dependent individual with significant 
     health issues. Employers will benefit from having employees 
     that are more productive because they are worrying less about 
     family responsibilities of direct caregiving.
       Interfaith strongly supports the creation of a separate set 
     of performance measures for the older worker under the 
     Workforce Investment Act. Statistically, mature workers stay 
     with an employer longer than their younger co-workers, take 
     fewer sick days, and are less likely to have an on the job 
     injury. This results in increased productivity and decreased 
     cost to employers. Retention outcomes should actually be 
     enhanced because of the older workers' work ethic, the pride 
     they take in their work and their loyalty to their employer.
       We are faced with the unique opportunity to expand the use 
     of the Senior Community Service Employment Program (SCSEP) 
     through a strong attachment to the Older Worker Opportunity 
     Act.
       A Federal Task Force on Older Workers could be very 
     helpful, especially one that would include private sector 
     employers, governmental agencies, older worker service 
     providers and older workers themselves.
           Sincerely,
     Carol Eschner,
       Executive Director.
     Patricia Delmenhorst,
       Employment Services Director.
                                  ____

                                               Goodwill Industries


                              of Southeastern Wisconsin, Inc.,

                                Milwaukee, WI, September 29, 2005.
     Hon. Herb Kohl,
     U.S. Senate
     Washington, DC.
       Dear Senator Kohl: Goodwill Industries of Southeastern 
     Wisconsin, Inc. (Goodwill) is pleased to support your Older 
     Workers Act of 2005.
       As you may know, Goodwill has a long history of supporting 
     and promoting older workers. Our designation as an ``Elder 
     Friendly Workplace'' with the Wisconsin Department of 
     Workforce Development, demonstrates our commitment to this 
     remarkable group of workers.
       Goodwill, as a leader in the area of workforce development 
     and training, recognizes that the nation's workforce is about 
     to experience a major change. As the ``boomers'' move closer 
     to retirement, employers across the nation will need to find 
     creative ways to keep these individuals engaged. Your 
     proposed legislation offers many viable solutions that would 
     encourage both employers and older workers to continue their 
     relationship well past the customary retirement age.
       Thank you for recognizing and supporting the tremendous 
     value of the older worker. Goodwill is pleased to support you 
     in this effort.
           Sincerely,
                                                   John L. Miller,
     President and C.E.O.
                                  ____



                                           AgeAdvantAge, Inc.,

                                     Madison, WI, October 1, 2005.
     Hon. Herb Kohl,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Kohl: AgeAdvantAge, Inc. would like to extend 
     our full support of your proposed legislation; The Older 
     Worker Opportunity Act of 2005.
       AgeAdvantAge is an Area Agency on Aging overseeing the 
     provision of services funded by the Older Americans Act (OAA) 
     throughout southern and western Wisconsin. We welcome any 
     effort to improve the lives of older people, be it through 
     expansion of aging services, or the opportunity for those we 
     serve to achieve economic self-sufficiency through 
     employment.
       We recognize with a rapidly aging population, efforts must 
     be made to keep America's older workers on the job. The 
     potential loss of workers, as Baby Boomers begin to retire, 
     has frightening implications for business, government and the 
     economy.
       Keeping older workers employed is crucial to keeping 
     America strong and competitive in the global market. 
     Demographics show the older worker is the workforce of the 
     future, and we believe the experience, work ethic and 
     dedication to quality of the older worker, will have a 
     positive impact on business.
       Government also needs older workers to remain employed and 
     contributing to the tax base, rather than become consumers of 
     public benefits and services. As an example, an older worker 
     who remains employed may also delay drawing Social Security 
     benefits, while at the same time continuing to contribute to 
     the fund through payroll withholdings.
       We also know that older people who remain active, both 
     physically and mentally, live longer and healthier lives. 
     Healthier individuals are in less need of publicly funded 
     health care services. Older people who are employed are also 
     less likely to need assistance from other social service 
     programs such

[[Page S11219]]

     as meal programs, food pantries, subsidized housing, food 
     stamps, and energy assistance.
       These programs are already faced with rising demand and 
     shrinking budgets, and extending employment for older 
     Americans can help delay, or at least reduce, the need for 
     these services.
       With the many benefits of keeping the older worker employed 
     in mind, we would like to address each of the five key points 
     of your proposal;

                          Employer Tax Credits

       The Baby Boom generation will have a significant impact on 
     both the workforce and the workplace as they continue to age. 
     Employers will need to accommodate the unique needs of this 
     cohort, with a key issue being flexibility.
       When an older worker leaves their job, they take with them 
     years of knowledge and experience. This sudden loss of 
     expertise negatively impacts an organization's productivity, 
     and therefore their bottom line. To prevent this, older 
     workers need to be offered incentives to remain in their 
     jobs.
       Employers need to consider such concepts as flex time, job 
     sharing, compressed work weeks, telecommuting, part-time 
     employment with pro-rated benefits, and phased retirement. 
     Many of these new work modes can be implemented at little or 
     no cost to the employer. All of them will benefit the 
     employer through a skilled, experienced, and stable 
     workforce.
       Using tax credits as an incentive to employers may bring 
     about change, if the credit is attractive, and comes with 
     minimal paperwork.
       As further incentive to creating an ``older worker 
     friendly'' workplace, the tax credit should be based on the 
     number of flexible options an employer offers, and employers 
     who hire older workers should receive additional tax credits.

                      Extension of COBRA Coverage

       As you have noted, current COBRA law allows for only 18 
     months of continued coverage if group policy coverage is lost 
     as the result of a reduction in hours. Under many other 
     circumstances, coverage can be extended to 36 months.
       Older workers who are no longer able to work full-time, 
     typically due to health reasons, often opt for early 
     retirement at age 62. This results in a loss of insurance 
     benefits, and an increased reliance on publicly funded health 
     care systems.
       Extending COBRA coverage until age 65 may accommodate an 
     older worker's need for both reduced hours and insurance, 
     thereby delaying their need for Social Security and publicly 
     funded heath care.

                          Eldercare Tax Credit

       Today, employees of any age are often times faced with 
     choosing between working and the needs of someone dependent 
     upon them for care. This is increasingly true for the older 
     worker.
       Many older workers find they are not able to remain 
     productive at work because the demands of caretaking have 
     become so great. Often times they will leave their job to 
     devote their time to the care of another. At times, their 
     loss of productivity could result in their termination. In 
     either instance, their employer has lost the benefit of 
     their knowledge and experience, and they have lost the 
     many benefits of being engaged in gainful and meaningful 
     employment.
       However, studies show older workers who receive assistance 
     with their caretaking responsibilities, can maintain their 
     productivity, and therefore remain employed. A tax credit to 
     help offset the cost for adult day care, in-home care or 
     respite, will help the older worker balance their life and 
     work needs.
       Further, employers will increasingly be asked to provide 
     assistance for employees tending to the needs of another. 
     This legislation should consider extending the eldercare tax 
     credit to employers who offer adult day care subsidies or 
     services.

              Access to The Workforce Investment Act (WIA)

       As a provider of employment services to older adults, we 
     can attest to the fact that older job seekers are routinely 
     excluded from participation in programs funded by the WIA. 
     WIA service providers often view the older job seeker as a 
     potential threat to program performance, as they may only be 
     seeking part-time employment.
       Though more than 60% of our current customers are between 
     the ages of 55 and 64, and seeking full-time employment with 
     benefits, a separate set of performance measures for older 
     job seekers, may alleviate WIA provider's fears, and result 
     in improved access to WIA services.
       Performance measures in the WIA, particularly those 
     regarding full-time employment and earnings increase, need to 
     be modified for an older job seeker. Placement into 
     employment, whether full- or part-time, should be considered 
     a positive outcome, and the earnings increase measure should 
     be removed altogether.
       This legislation should also consider an often overlooked 
     employment and training program serving older job seekers, 
     the Senior Community Service Employment Program (SCSEP). The 
     SCSEP is funded under Title V of the Older Americans Act of 
     1965 (OAA). Administered jointly by the Administration on 
     Aging (AoA) and the Department of Labor (DOL), this unique 
     program provides a lower-income, older adult with the 
     opportunity to learn new skills, and build the experience 
     necessary to transition into employment.
       The SCSEP is unique from all other employment and training 
     programs in many respects. It serves only those aged 55 or 
     older. It provides paid training, intensive case management, 
     and supportive services to all eligible individuals. And, 
     training activities result in services that benefit the 
     general welfare of the community.
       The SCSEP is also unique in that it takes a ``whole 
     person'' approach in providing assistance. As a SCSEP 
     operator. we understand that an older person often times has 
     needs other than, or in addition to, employment. Being 
     part of the aging network, we are able to link our 
     customers with the programs and services they need to 
     address non-employment issues.
       Over the past decade, the SCSEP has experienced a shift in 
     the balance between aging services and employment services. 
     The AoA has admittedly distanced itself from administration 
     of the program, effectively yielding its authority to the 
     DOL. As a result, less value is placed on the community 
     service aspects of the program, the connection to the aging 
     network and aging services is almost nonexistent, and the 
     program has actually become less accessible to older job 
     seekers.
       With the upcoming reauthorization of the Older Americans 
     Act, perhaps now is an opportune time to revisit the intended 
     purpose of the SCSEP and explore ways to strengthen its 
     services and expand its use. Because it is unique from other 
     programs funded under the OAA, and equally unique from the 
     WIA, perhaps the SCSEP is better placed among the unique 
     concepts described in the Older Worker Opportunity Act of 
     2005.

                      Task Force on Older Workers

       Finally, the creation of a task force to address the on-
     going needs of the aging workforce will be vital in assisting 
     business and government in implementing the changes necessary 
     to keep older workers working.
       A task force comprised not only of governmental units, but 
     also of business, service providers, and older workers 
     themselves, will prove a great asset as we face the 
     challenges and opportunities presented by an aging workforce, 
     and the need to keep them employed.
       Senator Kohl, thank you for the opportunity to comment on, 
     and support The Older Worker Opportunity Act of 2005. We also 
     thank you for your support of the older worker as is 
     evidenced in this progressive and forward-thinking proposal.
       If we can be of any further assistance, please do not 
     hesitate to call.
           Sincerely,
     Robert Kellerman,
       Executive Director.
     Michael Krauss,
       Older Worker Program Coordinator.
                                  ____

                                            Committee for Economic


                                                  Development,

                               Washington, DC, September 28, 2005.
     Hon. Herb Kohl,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Kohl: on behalf of the Committee for Economic 
     Development (CED), I commend you for your leadership in 
     addressing issues related to the aging of the American 
     workforce with your bill, the Older Worker Opportunity Act.
       CED stated several years ago that expanding opportunities 
     for older workers would be crucial to continued prosperity. 
     Our 1999 policy statement, ``New Opportunities for Older 
     Workers,'' argued that demographic change would reduce the 
     growth of our labor force well below current rates, absent 
     significant changes in behavior and policy. We noted that 
     many workers retire totally and abruptly because they have no 
     viable option to continue working, perhaps at reduced hours 
     that would be more suitable and would provide a phased 
     beginning to retirement. We urged that the business sector 
     and the federal government change perceptions and attitudes, 
     and where necessary laws and rules, to make it easier and 
     more attractive for older workers to achieve a gradual rather 
     than an immediate retirement.
       We are gratified to see that your bill would address many 
     of the problems that we identified in our 1999 statement. We 
     believe that your recommended changes in law would allow 
     workers to phase into retirement without the financial 
     penalties, in retirement income and health coverage, that now 
     can force people into unwilling retirement. With such an 
     improved incentive to work, our economy might suffer less of 
     a loss of labor-force growth, and might make the transition 
     to the retirement of the baby-boom generation more easily.
       We appreciate your efforts on this important issue, and 
     stand ready to help in building public understanding of the 
     vital and growing role of older workers.
       Sincerely,
                                                Charles E.M. Kolb,
                                                        President.
                                 ______