[Congressional Record Volume 154, Number 105 (Tuesday, June 24, 2008)]
[House]
[Pages H5932-H5934]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  SUPPORTING THE GOALS AND IDEALS OF NATIONAL SAVE FOR RETIREMENT WEEK

  Ms. SCHWARTZ. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 1294) supporting the goals and ideals of 
National Save for Retirement Week.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 1294

       Whereas Americans are living longer and the cost of 
     retirement continues to rise, in part because the number of 
     employers providing retiree health coverage continues to 
     decline, and retiree health care costs continue to increase 
     at a rapid pace;
       Whereas Social Security remains the bedrock of retirement 
     income for the great majority of the people of the United 
     States, but was never intended by Congress to be the sole 
     source of retirement income for families;
       Whereas recent data from the Employee Benefit Research 
     Institute indicates that, in the United States, less than \2/
     3\ of workers or their spouses are currently saving for 
     retirement and that the actual amount of retirement savings 
     of workers lags far behind the amount that will be needed to 
     adequately fund their retirement years;
       Whereas many workers may not be aware of their options for 
     saving for retirement or may not have focused on the 
     importance of, and need for, saving for their own retirement;
       Whereas many employees have available to them through their 
     employers access to defined benefit and defined contribution 
     plans to assist them in preparing for retirement, yet many of 
     them may not be taking advantage of employer-sponsored 
     defined contribution plans at all or to the full extent 
     allowed by the plans as prescribed by Federal law;
       Whereas all workers, including public- and private-sector 
     employees, employees of tax-exempt organizations, and self-
     employed individuals, can benefit from increased awareness of 
     the need to save adequate funds for retirement and the 
     availability of tax-preferred savings vehicles to assist them 
     in saving for retirement; and
       Whereas October 19 through October 25, 2008, has been 
     designated as ``National Save for Retirement Week'': Now, 
     therefore, be it
       Resolved, That the House of Representatives--
       (1) supports the goals and ideals of National Save for 
     Retirement Week, including raising public awareness of the 
     various tax-preferred retirement vehicles;
       (2) supports the need to raise public awareness of 
     efficiently utilizing substantial tax revenues that currently 
     subsidize retirement savings, revenues in excess of 
     $170,000,000,000 for the 2007 Fiscal Year Budget;
       (3) supports the need to raise public awareness of the 
     importance to save adequately for retirement and the 
     availability of tax-preferred employer-sponsored retirement 
     savings vehicles; and
       (4) calls on the States, localities, schools, universities, 
     nonprofit organizations, businesses, other entities, and the 
     people of the United States to observe this week with 
     appropriate programs and activities with the goal of 
     increasing the retirement savings for all the people of the 
     United States.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Pennsylvania (Ms. Schwartz) and the gentleman from Texas (Mr. Sam 
Johnson) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Pennsylvania.
  Ms. SCHWARTZ. Mr. Speaker, I yield myself such time as I may consume.
  The resolution before us supports the goals and ideals of National 
Save for Retirement Week, which this year falls between October 19 and 
October 25, 2008. I want to thank my colleague, Mr. Johnson of Texas, 
for working with me to bring attention to the importance of retirement 
planning for American families.
  We are living in a time when workers are being asked to shoulder an 
increasing share of the cost of saving for retirement. Even with an 
employee-sponsored retirement plan and the promise of Social Security 
benefits, Americans need to put additional money aside to ensure a 
financially secure retirement.
  For many Americans, saving is becoming an increasingly difficult task 
as they struggle to meet their everyday obligations. Even in solidly 
middle-income families, financial resources are stretched thin as 
parents work to meet other pressing needs, whether it's purchasing 
health care coverage, paying for college, buying a tank of gas, or 
simply paying monthly bills on time.
  Over the past several years, we have seen a dramatic shift in our 
retirement system. Most workers are no longer eligible for traditional 
pensions, which provide a predictable monthly benefit throughout 
retirement. Instead, workers are bearing more of the costs and 
investment risks of saving adequately for their retirement through 
workplace defined contribution plans, such as 401(k)s or through IRAs.
  As a result, the value of most Americans' retirement benefits, and 
the security of their retirement, is now directly linked to their own 
decisions and the amount of dollars that they save over the years and 
the balance held in their accounts when they retire.
  The dramatic shift towards individual defined contribution plans is 
clear. According to Employee Benefits Research Institute, only 10 
percent of workers are currently covered by defined benefit plans, 
compared to 63 percent of workers who are currently covered by 401(k) 
plans. This stands in stark contrast to the reality of 30 years ago 
when it was just the opposite, when coverage rates were 62 percent for 
defined benefits plans and 16 percent for 401(k)s.
  While this shift is empowering American workers to make more of their 
own financial decisions, many families are finding it difficult to save 
significantly to meet their retirement needs. It is particularly 
difficult during a time of economic uncertainty, as we are experiencing 
today.
  It may be difficult but continues to be vitally important for 
Americans to prepare for retirement, to think about savings, especially 
given that half of all workers have less than 25 percent in total 
savings, whether for retirement or to help them in periods of financial 
difficulty.

[[Page H5933]]

  As our country shifts towards an increasing reliance on individual 
savings and as families are tempted to dip into their retirement 
accounts to meet current everyday expenses during this time of high gas 
and food prices, it is more important than ever that we educate 
Americans about the pressing need to save even small amounts every year 
that they possibly can.
  In my district, I have partnered with banks and credit unions and 
other financial institutions to host seminars to help provide 
information on how to make educated, financially responsible decisions 
about personal and family budgets and to help establish a habit of 
saving for the future.
  I have even visited with schools in my district to help reach out to 
young people in order to emphasize the importance of saving for the 
future. It is never too early to learn that every little bit we save 
now will help in the long run.
  So whether you're a 16-year-old receiving your first paycheck, or a 
25-year-old getting your first real raise, or a 45-year-old with a 
mortgage and two kids, the habit of putting a little bit away every 
month in regular savings can, with the help of compound interest, add 
up to a more secure retirement.

                              {time}  1345

  The resolution before us supports and encourages educational 
opportunities on a national scale and creates a collaborative effort to 
emphasize the importance of making savings for retirement a priority 
for all Americans.
  Mr. Speaker, I urge my colleagues to support this resolution so that 
we can help Americans create a financial security for themselves in 
their retirement years.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise in support of H. Res. 1294, to recognize the 
goals of National Save for Retirement Week. I am pleased to join my 
colleague from Pennsylvania, Representative Allyson Schwartz, to again 
introduce a resolution in support of National Save for Retirement Week.
  The week is designated this year as October 19-25. You know the best 
time for Americans to save is on payday. That is when they have got the 
cash. When employees save through their employer-based retirement plan, 
the money comes out of their paycheck before other tempting priorities 
get in the way.
  Saving for numero uno ought to be every working American's top 
priority before spending on optional things like dinner, movies, or, I 
hope today, still buying a shiny new car. Saving for retirement is not 
as flashy or fun as many competing priorities, but the only way most of 
us are ever going to be able to afford retirement in the future is by 
saving today.
  This spring, the Employee Benefit Research Institute released its 
annual retirement confidence survey that shows Americans' confidence in 
their ability to afford a comfortable retirement has dropped to its 
lowest level in several years. This drop in confidence represents 
several concerns, but the big concerns I hear about are the overall 
state of the economy, the weak stock market and concern about one's own 
job security.
  The answer to these concerns, in my opinion, is to save in an 
employer-based retirement plan. The first reason is that most employers 
match the employee contributions. If an employee puts 1 percent of 
earnings into a plan, many employers match that contribution dollar for 
dollar. That means the employee gets a 100 percent rate of return. Even 
if the market slides a little bit, the employee still comes out ahead 
because of the company match. Many employers match even more 
generously, up to 4 or 6 percent of salary. When an employer is handing 
out free money, I encourage all employees to get in line and let's say 
``yes.''
  A second reason to save at work is our economy is going to recover 
soon and employees can look at their current stock market purchases as 
buying low. The formal term for regular purchases in the stock market 
is dollar cost averaging. That means you purchase mutual funds or 
stocks at regular intervals, such as on payday, regardless of share 
price. Under dollar cost averaging, when the market prices are low, you 
end up buying more shares with a set amount of money, and when market 
prices are high you buy fewer shares with your set amount of dollars. 
Buy low, sell high. It works every time to build wealth.
  The third reason to participate in an employer-based retirement plan 
is that the sooner people save money, the sooner the most powerful 
force on Earth can work for them, the power of compound interest. With 
an average of 8 percent return, money doubles every 9 years. The cost 
of living in the future, even in retirement, is not going to go down, 
but money saved early in one's work life will make retirement easier.
  Another powerful force in saving is inertia, sometimes described as a 
body at rest stays at rest, or a body in motion stays in motion. 
Employers and Congress recognize that principles of inertia often means 
that employees never get around to affirmatively signing up for 
retirement plans at work.
  To address inertia, Congress passed a law to allow employers to 
automatically enroll employees in retirement plans and get those 
savings rolling forward with the power of compound interest. The 
amazing thing is we are now seeing roughly 90 percent employer 
participation in retirement plans with an automatic enrollment, up from 
previous levels of roughly 70 percent. I am glad to see this new law is 
working.
  Last year, after we enacted a similar resolution, I was happy to see 
reports about the number of employers that promoted National Save for 
Retirement Week. There were lots of employee benefit fairs, promotional 
enrollment meetings and seminars, and other employers printed up new 
brochures for employees to review regarding the importance of 
retirement savings. I hope to work with more employers in my 
congressional district this year to bring the message of Save for 
Retirement Week to employees.
  Mr. Speaker, I know that Americans are strapped for cash and that 
right now saving is a hard thing to do. Rising gas prices are taking 
bigger and bigger bites out of everyone's income. It is hard to set 
aside retirement money for years down the road. It feels like right now 
there is a lot of month left at the end of every paycheck.
  But Americans don't want to work forever, and the only way to retire 
is to plan and save. I would encourage everyone to go to the Web site 
choosetosave.org and use any of the calculators that help to plan for 
retirement, college savings, and budgeting in general. Planning is a 
great first step to financial security.
  Mr. Speaker, we know that Americans who have only Social Security as 
retirement income end up in poverty. As much as some of my colleagues 
hate to admit it, Social Security has a serious funding problem in a 
relatively short time and we need to address the problem. We can't just 
tax our way out of that problem either.
  Part of the reason for our horrible national savings rate is that 
Americans are paying a whopping 15 percent of salary between their 
individual share and their employer's share in payroll taxes.
  In 1984, when payroll taxes went up dramatically by 5 percent, the 
national savings rate fell by the same amount. Congress took those 
payroll taxes out of Americans' pockets in order to fund Social 
Security and Medicare, with the promise that the programs would always 
be there to pay benefits in the future. The problem is our programs 
face huge structural deficits, and Americans have not been saving. We 
need to change a lot of things, but the first thing we can do is get 
people to start saving. Americans need to save at work where they 
generally get a match from their employer and where the money goes down 
to their own retirement accounts before expenses get in the way.
  I look forward to working with employers and financial institutions 
in my Dallas and Collin County representation areas later this year to 
promote National Save for Retirement Week, which will happen the week 
of 19 October through 25 October.
  Mr. Speaker, I want to thank Allyson for introducing this 
legislation.
  Mr. Speaker, I yield back the balance of my time.

[[Page H5934]]

                             General Leave

  Ms. SCHWARTZ. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Pennsylvania?
  There was no objection.
  Ms. SCHWARTZ. I just want to close by thanking my colleague Mr. 
Johnson for working with me on this legislation this year, and for 
encouraging even in these difficult economic times that all Americans 
think about saving even a little bit of I week. With compound interest, 
it does add up, particularly if you start young to do that. But any 
time is good. And certainly as we recognize that there is increasing 
reliance on our own individual ability to save and to think about the 
future, this is an important resolution that can help Americans have 
greater financial security in their retirement.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Pennsylvania (Ms. Schwartz) that the House suspend the 
rules and agree to the resolution, H. Res. 1294.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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