[Congressional Record Volume 154, Number 69 (Tuesday, April 29, 2008)]
[Senate]
[Pages S3510-S3512]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself, Mr. Conrad, and Mr. Kohl):
  S. 2933. A bill to improve the employability of older Americans; to 
the Committee on Finance.
  Mr. SMITH. Mr. President, on behalf of Senators Conrad and Kohl, I 
introduce the Incentives for Older Workers Act of 2008.
  The United States is about to experience an unprecedented demographic 
shift with the aging of the baby boomer generation. According to the 
U.S. Census Bureau, in 1980, individuals age 50 and older represented 
26 percent of the population. By 2050, this is expected to rise to 37 
percent. In my home State of Oregon, residents age 65 and older are 
expected to comprise 25 percent of the State population by 2025. This 
will make Oregon the fourth oldest State in the country.
  The aging of our population will have a significant impact on many 
aspects

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of our society, including our labor market. A 2007 Conference Board 
study reports that current retirement trends could create a U.S. labor 
shortage of 4.8 million workers in 10 years. According to Dr. Preston 
Pulliams of Portland Community College, 53 percent of Oregon businesses 
report that it is extremely or very likely that their organization will 
face a shortage of qualified workers during the next 5 years as a 
result of the retirement of baby boomers.
  The Incentives for Older Workers Act will help mitigate the effects 
of our aging workforce by providing incentives to older Americans to 
stay in the workforce longer, encouraging employers to recruit and 
retain older workers, and eliminating barriers to working longer. For 
example, the current Work Opportunity Tax Credit allows employers 
credits against wages for hiring individuals from one or more of nine 
targeted groups, such as recipients of public assistance and high risk 
youth. Our bill would extend that credit for employers that hire older 
workers.
  In addition, Social Security benefits are increased if retirement is 
delayed beyond full retirement age. Increases based on delaying 
retirement no longer apply when people reach age 70, even if they 
continue to delay taking benefits. Our bill would allow people to earn 
delayed retirement credits up until age 72, instead of age 70.
  To collect, organize and disseminate information on older worker 
issues, the bill also would create a National Resource Center on Aging 
and the Workforce within the U.S. Department of Labor. This center 
would act as a national information clearinghouse on workforce issues, 
challenges and solutions for older workers.
  The bipartisan Incentives for Older Workers Act will provide seniors 
with the flexibility and opportunity to continue working in retirement 
if they choose to. I look forward to working with my colleagues to 
enact these important reforms. Mr. President, I ask unanimous consent 
that the text of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2933

       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 ``Incentives 
     for Older Workers Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Prohibition of benefit reduction due to phased retirement.
Sec. 3. Allowance of delayed retirement social security credits until 
              age 72.
Sec. 4. Reduction in social security benefit offset resulting from 
              certain earnings.
Sec. 5. National Resource Center on Aging and the Workforce.
Sec. 6. Civil service retirement system computation for part-time 
              service.
Sec. 7. Workforce investment activities for older workers.
Sec. 8. Eligibility of older workers for the work opportunity credit.
Sec. 9. Normal retirement age.

     SEC. 2. PROHIBITION OF BENEFIT REDUCTION DUE TO PHASED 
                   RETIREMENT.

       (a) Prohibition of Benefit Reduction Due to Phased 
     Retirement.--
       (1) Amendment to the employee retirement income security 
     act of 1974.--Section 204(b)(1) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1054(b)(1)) is amended 
     by adding at the end the following:
       ``(I)(i) Notwithstanding the preceding subparagraphs, in 
     the case of a participant who----
       ``(I) begins a period of phased retirement, and
       ``(II) was employed on a substantially full-time basis 
     during the 12-month period preceding the period of phased 
     retirement,

     a defined benefit plan shall be treated as meeting the 
     requirements of this paragraph with respect to the 
     participant only if the participant's compensation or average 
     compensation taken into account under the plan with respect 
     to the years of service before the period of phased 
     retirement is not, for purposes of determining the accrued 
     benefit for such years of service, reduced due to such phased 
     retirement
       ``(ii) For purposes of this subparagraph, a period of 
     phased retirement is a period during which an employee is 
     employed on substantially less than a full-time basis or with 
     substantially reduced responsibilities, but only if the 
     period begins after the participant reaches age 50 or has 
     completed 30 years of service creditable under the plan.''.
       (2) Amendment to the internal revenue code of 1986.--
     Section 411(b)(1) of the Internal Revenue Code of 1986 
     (relating to accrued benefits) is amended by adding at the 
     end the following:
       ``(I) Accrued benefit may not decrease on account of phased 
     retirement.--
       ``(i) In general.--Notwithstanding the preceding 
     subparagraphs, in the case of a participant who--

       ``(I) begins a period of phased retirement, and
       ``(II) was employed on a substantially full-time basis 
     during the 12-month period preceding the period of phased 
     retirement,

     a defined benefit plan shall be treated as meeting the 
     requirements of this paragraph with respect to the 
     participant only if the participant's compensation or average 
     compensation taken into account under the plan with respect 
     to the years of service before the period of phased 
     retirement is not, for purposes of determining the accrued 
     benefit for such years of service, reduced due to such phased 
     retirement.
       ``(ii) Period of phased retirement.--For purposes of this 
     subparagraph, a period of phased retirement is a period 
     during which an employee is employed on substantially less 
     than a full-time basis or with substantially reduced 
     responsibilities, but only if the period begins after the 
     participant reaches age 50 or has completed 30 years of 
     service creditable under the plan.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to benefits payable after the date of enactment 
     of this Act.

     SEC. 3. ALLOWANCE OF DELAYED RETIREMENT SOCIAL SECURITY 
                   CREDITS UNTIL AGE 72.

       (a) In General.--Paragraphs (2) and (3) of section 202(w) 
     of the Social Security Act (42 U.S.C. 402(w)) are each 
     amended by striking ``age 70'' and inserting ``age 72''.
       (b) Effective Dates.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 4. REDUCTION IN SOCIAL SECURITY BENEFIT OFFSET RESULTING 
                   FROM CERTAIN EARNINGS.

       (a) In General.--Section 203(f)(3) of the Social Security 
     Act (42 U.S.C. 403(f)(3)) is amended by striking ``in the 
     case of any individual'' and all that follows through ``in 
     the case of any other individual''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5. NATIONAL RESOURCE CENTER ON AGING AND THE WORKFORCE.

       (a) Establishment.--The Secretary of Labor shall award a 
     grant for the establishment and operation of a National 
     Resource Center on Aging and the Workforce to address issues 
     on age and the workforce and to collect, organize, and 
     disseminate information on older workers.
       (b) Activities.--The Center established under subsection 
     (a) shall--
       (1) serve as a national information clearinghouse on 
     workforce issues, challenges, and solutions planning for 
     older workers that would serve employers, local communities, 
     and State and local government organizations, as well as 
     other public and private agencies, including providing for 
     the cataloging, organization, and summarizing of existing 
     research, resources, and scholarship relating to older 
     workforce issues;
       (2) identify best or most-promising practices across the 
     United States that have enjoyed success in productively 
     engaging older Americans in the workforce;
       (3) create toolkits for employers, trade associations, 
     labor organizations, and non-profit employers that would 
     feature a series of issue papers outlining specific tasks and 
     activities for engaging older individuals in select 
     industries;
       (4) distribute information to government planners and 
     policymakers, employers, organizations representing and 
     serving older adults, and other appropriate entities through 
     the establishment of an interactive Internet website, the 
     publications of articles in periodicals, pamphlets, 
     brochures, and reports, as well as through national and 
     international conferences and events; and
       (5) provide targeted and ongoing technical assistance to 
     select units of government, private corporations, and 
     nonprofit organizations.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be available in each 
     fiscal year to carry out this section.

     SEC. 6. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-
                   TIME SERVICE.

       Section 8339(p) of title 5, United States Code, is amended 
     by adding at the end the following:
       ``(3)(A) In the administration of paragraph (1)--
       ``(i) subparagraph (A) of such paragraph shall apply to any 
     service performed before, on, or after April 7, 1986;
       ``(ii) subparagraph (B) of such paragraph shall apply to 
     all service performed on a part-time or full-time basis on or 
     after April 7, 1986; and
       ``(iii) any service performed on a part-time basis before 
     April 7, 1986, shall be credited as service performed on a 
     full-time basis.
       ``(B) This paragraph shall be effective with respect to any 
     annuity entitlement to which is based on a separation from 
     service occurring on or after the date of the enactment of 
     this paragraph.''.

     SEC. 7. WORKFORCE INVESTMENT ACTIVITIES FOR OLDER WORKERS.

       (a) State Boards.--Section 111(b)(1)(C) of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2821(b)(1)(C)) is amended--

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       (1) in clause (vi), by striking ``and'' at the end;
       (2) by redesignating clause (vii) as clause (viii); and
       (3) by inserting after clause (vi) the following:
       ``(vii) representatives of older individuals, who shall be 
     representatives from the State agency (as defined in section 
     102 of the Older Americans Act of 1965 (42 U.S.C. 3002)) in 
     the State or recipients of grants under title V of such Act 
     (42 U.S.C. 3056 et seq.) in the State; and''.
       (b) Local Boards.--Section 117(b)(2)(A) of such Act (29 
     U.S.C. 2832(b)(2)(A)) is amended--
       (1) in clause (v), by striking ``and'' at the end; and
       (2) by adding at the end the following:
       ``(vii) representatives of older individuals, who shall be 
     representatives from an area agency on aging (as defined in 
     section 102 of the Older Americans Act of 1965 (42 U.S.C. 
     3002)) in the local area or recipients of grants under title 
     V of such Act (42 U.S.C. 3056 et seq.) in the local area; 
     and''.
       (c) Reservation of Funds for Older Individuals.--Section 
     134 of such Act (29 U.S.C. 2864) is amended by adding at the 
     end the following:
       ``(f) Reservation for Older Individuals From Funds 
     Allocated for Adults.--
       ``(1) Definition.--In this subsection, the term `allocated 
     funds' means the funds allocated to a local area under 
     paragraph (2)(A) or (3) of section 133(b).
       ``(2) Reservation.--The local area shall ensure that 5 
     percent of the allocated funds that are used to provide 
     services under subsection (d) or (e) are reserved for 
     services for older individuals.''.

     SEC. 8. ELIGIBILITY OF OLDER WORKERS FOR THE WORK OPPORTUNITY 
                   CREDIT.

       (a) In General.--Section 51(d)(1) of the Internal Revenue 
     Code of 1986 (relating to members of targeted groups) is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (H),
       (2) by striking the period at the end of subparagraph (I) 
     and inserting ``, or'', and
       (3) by adding at the end the following new subparagraph:
       ``(J) a qualified older worker.''.
       (b) Qualified Older Worker.--Section 51(d) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by redesignating paragraphs (11), (12), and (13) as 
     paragraphs (12), (13), and (14), respectively, and
       (2) by inserting after paragraph (10) the following new 
     paragraph:
       ``(11) Qualified older worker.--The term `qualified older 
     worker' means any individual who is certified by the 
     designated local agency as being an individual who is age 55 
     or older and whose income is not more than 125 percent of the 
     poverty line (as defined by the Office of Management and 
     Budget), excluding any income that is unemployment 
     compensation, a benefit received under title XVI of the 
     Social Security Act (42 U.S.C. 1381 et seq.), a payment made 
     to or on behalf of veterans or former members of the Armed 
     Forces under the laws administered by the Secretary of 
     Veterans Affairs, or 25 percent of a benefit received under 
     title II of the Social Security Act (42 U.S.C. 401 et 
     seq.).''.
       (c) Effective Date.--The amendments made this section shall 
     apply to amounts paid or incurred after the date of the 
     enactment of this Act to individuals who begin work for the 
     employer after such date.

     SEC. 9. NORMAL RETIREMENT AGE.

       (a) Amendment to Internal Revenue Code of 1986.--Section 
     411of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new subsection:
       ``(f) Special Rule for Determining Normal Retirement Age 
     for Certain Existing Defined Benefit Plans.--
       ``(1) In general.--For purposes of subsection (a)(8)(A), an 
     applicable plan shall not be treated as failing to meet any 
     requirement of this subchapter, or as failing to have a 
     uniform normal retirement age for purposes of this 
     subchapter, solely because the plan has adopted the normal 
     retirement age described in paragraph (2).
       ``(2) Applicable plan.--For purposes of this subsection--
       ``(A) In general.--The term `applicable plan' means a 
     defined benefit plan that, on the date of the introduction of 
     the Incentives for Older Workers Act, has adopted a normal 
     retirement age which is the earlier of--
       ``(i) an age otherwise permitted under subsection 
     (a)(8)(A), or
       ``(ii) the age at which a participant completes the number 
     of years (not less than 30 years) of benefit accrual service 
     specified by the plan.

     A plan shall not fail to be treated as an applicable plan 
     solely because, as of such date, the normal retirement age 
     described in the preceding sentence only applied to certain 
     participants or to certain employers participating in the 
     plan.

       ``(B) Expanded application.--If, after the date described 
     in subparagraph (A), an applicable plan expands the 
     application of the normal retirement age described in 
     subparagraph (A) to additional participants or participating 
     employers, such plan shall also be treated as an applicable 
     plan with respect to such participants or participating 
     employers.''.
       (b) Amendments to Employee Retirement Income Security Act 
     of 1974.--Section 204 of the Employee Retirement Income 
     Security Act of 1974 is amended by redesignating subsection 
     (k) as subsection (l) and by inserting after subsection (j) 
     the following new subsection:
       ``(k) Special Rule for Determining Normal Retirement Age 
     for Certain Existing Defined Benefit Plans.--
       ``(1) In general.--For purposes of section 3(24), an 
     applicable plan shall not be treated as failing to meet any 
     requirement of this title, or as failing to have a uniform 
     normal retirement age for purposes of this title, solely 
     because the plan has adopted the normal retirement age 
     described in paragraph (2).
       ``(2) Applicable plan.--For purposes of this subsection--
       ``(A) In general.--The term `applicable plan' means a 
     defined benefit plan that, on the date of the introduction of 
     the Incentives for Older Workers Act, has adopted a normal 
     retirement age which is the earlier of--
       ``(i) an age otherwise permitted under section 2(24), or
       ``(ii) the age at which a participant completes the number 
     of years (not less than 30 years) of benefit accrual service 
     specified by the plan.

     A plan shall not fail to be treated as an applicable plan 
     solely because, as of such date, the normal retirement age 
     described in the preceding sentence only applied to certain 
     participants or to certain employers participating in the 
     plan.
       ``(B) Expanded application.--If, after the date described 
     in subparagraph (A), an applicable plan expands the 
     application of the normal retirement age described in 
     subparagraph (A) to additional participants or participating 
     employers, such plan shall also be treated as an applicable 
     plan with respect to such participants or participating 
     employers.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning before, on, or after the date 
     of the enactment of this Act.
                                 ______