[Congressional Record Volume 159, Number 102 (Wednesday, July 17, 2013)]
[Senate]
[Pages S5750-S5751]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SAFE ACT
Mr. HATCH. Mr. President, I ask unanimous consent to have printed in
the Record the following seven letters expressing support for S. 1270,
the Secure Annuities for Employee (SAFE) Retirement Act of 2013:
Fidelity Investments, National Benefit Services, LLC, National Rural
Electric Cooperative Association, Principal Life Insurance Company,
Small Business Council of America, Transamerica Retirement Solutions,
and the U.S. Chamber of Commerce.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Fidelity Investments,
July 11, 2013.
Hon. Orrin Hatch,
Hart Senate Office Building,
Washington, DC.
Dear Senator Hatch: On behalf of Fidelity Investments, I
would like to thank you for advancing the discussion on
retirement security. The private employer pension system has
been a great success; however, we share your concerns that
more needs to be done to ensure that millions of Americans
are ready for retirement.
The SAFE Retirement Act of 2013 includes several provisions
that will improve retirement security. For example, the bill
would enhance the use of automatic enrollment--a tool that
has proven to increase participation in workplace savings
plans. We recordkeep over 20,000 corporate defined
contribution plans, representing over 12 million
participants. Our data and analysis reveal that participation
rates in plans with automatic enrollment is on average 90%.
Currently 60% of those defined contribution plans that offer
automatic-enrollment have elected the safe harbor default
deferral of three percent. A higher minimum default rate,
such as six percent in the bill, may result in more
participants saving at higher rates sooner.
The bill also facilitates electronic delivery and includes
other provisions that would simplify plan administration,
making it easier for small businesses to adopt plans. Our
data show that participants who receive electronic statements
and notices are more likely to take actions than participants
who receive paper statements and communications. We find that
electronic mail yields response rates three times higher than
print (13.7% vs. 3.8%).
We applaud your leadership on retirement security and
appreciate your efforts to advance needed reforms to the
private retirement system. We look forward to working with
you on these important issues.
Regards,
Pamela D. Everhart,
Senior Vice President.
____
National Benefit
Services, LLC,
Jordan, UT, June 24, 2013.
Hon. Orrin Hatch,
Hart Senate Office Building, U.S. Senate, Washington, DC.
Dear Senator Hatch: I am writing to you to express my
support for the Pension Reform Bill, a New Pension Plan for
State and Local Governments. The Pension Bill proposes many
improvements and needed changes to the pension/retirement
system. Among its many proposed improvements, it supports and
strengthens the need to work through employers to promote
retirement savings programs. In my opinion, the proposal
would make it easier and less costly for an employer to
implement and maintain a retirement plan for either
employees. The Multiple Employer Plan proposals are
particularly encouraging, as many employers and
administrators are discouraged with the current statute of
the law in this area. As you may know, National Benefit
Services, LLC (``NBS'') is committed to helping employers
design and maintain productive retirement savings programs.
As a whole, the Pensions Bill is important to NBS because we
have experienced firsthand how positive legislation can help
small employers offer a full-fledged retirement program to
employees at a fraction of the cost.
Thank you for the opportunity to share my views on the
Pension Bill. I support and appreciate your offices efforts
in improving the retirement system. If there is anything I
can do to help in your further pension reform efforts, please
let me know. Thank you again for your time and interest.
Sincerely,
Scott F. Betts,
Senior Vice President,
National Benefit Services, LLC.
____
National Rural Electric
Cooperative Association,
Arlington, VA, July 3, 2013.
Re SAFE Retirement Act of 2013.
Hon. Orrin Hatch,
Ranking Republican Member, U.S. Senate, Committee on Finance,
Washington, DC.
Dear Senator Hatch: Thank you for your consistent
leadership on so many issues affecting rural electric
cooperatives in Utah, and throughout the country.
NRECA members are committed to preserving and enhancing the
voluntary employer-sponsored retirement system and the tax
policies that support it. We applaud your consistent
leadership on private retirement plan issues, and look
forward to working with you on your most recent bill, the
``SAFE Retirement Act of 2013'', which would help address
many critical challenges facing the private retirement plan
system.
NRECA is proud that the vast majority of its members offer
comprehensive retirement benefits through a traditional
defined-benefit plan (the NRECA Retirement Security Plan) and
a defined-contribution plan (the NRECA 401(k) Plan). Both of
these critical ``multiple-employer'' benefit plans (under
Sec. 413(c) of the Internal Revenue Code) are operated to
maximize retirement savings for employees, retirees and their
families and provides each co-op employee the financial means
to enjoy a comfortable and secure retirement.
Your support for rural electric cooperatives has been
critical to our success, and we look forward to continuing
our work with you on the important issues that impact our
dedicated employees and our consumer-owners.
Sincerely,
Kirk D. Johnson,
Senior Vice President, Government Relations.
____
Principal Life Insurance Company,
Des Moines, IA, July 2, 2013.
Re Title II of ``Secure Annuities for Employee Retirement Act
of 2013''.
Hon. Orrin Hatch,
U.S. Senate,
Washington, DC.
Dear Senator Hatch: Employer sponsored 401(k) plans and
other worksite retirement plans have helped millions of
workers save trillions of dollars. These plans have proven to
be resilient even in challenging times but more is needed to
expand access to worksite retirement plans. By removing
barriers to new retirement plan formation and encouraging
plan designs that increase participation and savings, more
Americans can gain access to retirement plans and be
encouraged to save more effectively through them.
On behalf of Principal Financial Group, I want to thank you
for furthering this discussion through the inclusion of Title
II, ``Private Pension Reform'' as contained in ``Secure
Annuities for Employee Retirement Pension Act of 2013.'' In
our view, the key challenges that need to be addressed to
expand retirement savings are: expand coverage of employees
in voluntary, employer-sponsored retirement plans; increase
retirement savings to adequate levels; and secure income to
last through retirement. Each of these areas is addressed in
the proposed legislation.
Thank you for your leadership in this area. We are still
reviewing the specifics of the bill and look forward to
working with you as the process continues. Seeking solutions
to these important policy considerations to expand the
current employer based retirement system is vital to the
economic wellbeing of millions of future retirees.
Sincerely,
Gregory J. Burrows,
Senior Vice President.
____
Small Business Council of America,
July 2, 2013.
Hon. Orrin Hatch,
Ranking Member, Senate Finance Committee,
Washington, DC.
Dear Ranking Member Hatch: On behalf of the members of the
Small Business Council of America (``SBCA'') and its advisory
boards, we want to thank you for all of your efforts in
support of the private retirement system and express our
strong support for the private retirement system provisions
in Title II and 111 of the SAFE Retirement Act of 2013.
The Small Business Council of America (SBCA) is a national
nonprofit organization which has represented the interests of
privately-held and family-owned businesses solely on federal
tax, health care, pension and other employee benefit matters
since 1979. The SBCA, through its members, represents well
over 20,000 enterprises in retail, manufacturing and service
industries, virtually all of which provide health insurance
and retirement plans. SBCA's Advisory Boards contain many of
the nation's leading small business advisors in the legal,
actuarial, accounting and plan administration fields. The
expertise of these board members in the small business
retirement plan area is unmatched in the small business
world.
Longer life expectancies are requiring increased retirement
savings. The present qualified retirement plan system, which
is largely dependent on federal tax laws, has been very
successful in providing retirement security. However, there
is still room for significant improvement. By simplifying the
administrative requirements of sponsoring a qualified
retirement plan and providing employers with new options, the
private pension reform provisions of the SAFE Retirement Act
will encourage employers to both maintain existing plans as
well as to establish new plans.
The existing notice and other administrative requirements
of sponsoring a plan are costly and burdensome. For small
business owners, the decision of whether to sponsor a
qualified retirement plan is largely based on the balance
between the burdens of sponsoring a plan and the benefit to
its key employees. By simplifying the operation of
[[Page S5751]]
qualified retirement plans, the SAFE Retirement Act will make
it easier for small business owners to rationalize sponsoring
plans.
The SBCA believes that this bill will increase the
retirement security of small business employees throughout
the nation and we will make ourselves available to fully
support your efforts to protect America's retirement system.
Sincerely yours,
Paula Calimafde, Esq.,
SBCA, Chairman.
____
Transamerica',
Harrison, NY, July 3, 2013.
Re Discussion Draft SAFE Retirement Act of 2013.
Hon. Orrin Hatch,
U.S. Senate, Hart Office Building, Washington, DC.
Dear Senator Hatch: As President & CEO of Transamerica
Retirement Solutions, I would like to thank you for your
leadership on retirement security issues as most recently
evidenced by your discussion draft of the SAFE Retirement Act
of 2013.
Your discussion draft addresses in a comprehensive manner
problems faced by small and large employers in providing
their employees the means to save for a secure retirement, as
well as by individuals in trying to achieve a secure
retirement through workforce savings. In particular, removing
impediments to the adoption of multiple employer plans,
expanding the auto enrollment safe harbor, facilitating the
use of in-plan annuities and providing annuities as a
distribution option are matters in which Transamerica has
been extremely active, both from a policy and market
development standpoint. I and others at Transamerica look
forward to working with you and your staff as you finalize
these and other provisions of the SAFE Retirement Act of
2013.
The Transamerica companies market life insurance,
annuities, pensions and supplemental health insurance, as
well as mutual funds and related investment products
throughout the U.S. and in selected countries worldwide.
Transamerica Retirement Solutions provides and services
workforce retirement savings plans in the small and mid-large
employer markets. Transamerica helps more than three million
retirement plan participants save and invest wisely to secure
their retirement dreams. The Transamerica companies are
ranked among the top insurance groups in the U.S., based on
admitted assets, and employ approximately 12,000 people
nationwide.
Please do not hesitate to contact either me or Jeanne de
Cervens, VP, Transamerica Federal Government Affairs, if I
can provide any specific information regarding our retirement
plan business or market expertise to support your efforts.
Very truly yours,
Peter Kunkel,
President & CEO.
____
Chamber of Commerce of the
United States of America,
Washington, DC, July 8, 2013
Hon. Orrin Hatch,
U.S. Senate, Washington, DC.
Dear Senator Hatch: The U.S. Chamber of Commerce, the
world's largest business federation representing the
interests of more than three million businesses of all sizes,
sectors, and regions, as well as state and local chambers and
industry associations, and dedicated to promoting,
protecting, and defending America's free enterprise system,
thanks you for introducing the ``Secure Annuities for
Employees (SAFE) Retirement Act of 2013. '' Retirement
security is a critical issue facing all Americans, and our
members support your efforts to encourage participation in
retirement savings plans.
The SAFE Retirement Act includes several provisions that
the Chamber believes are important reforms to the retirement
system: enhancing the start-up credit for small businesses;
eliminating barriers to the use of multiple employer plans;
reducing discrimination testing and other administrative
burdens; reducing administrative restrictions on hardship
distributions; and simplifying notice requirements. Overall,
the Chamber believes that the SAFE Retirement Act would
provide meaningful reform and encourage participation by both
plan sponsors and plan participants in the employer-provided
retirement system.
The Chamber appreciates your leadership on this issue, and
looks forward to working with you and your colleagues to
enact this legislation.
Sincerely,
R. Bruce Josten.
Mr. HATCH. Mr. President, I ask unanimous consent to have printed in
the Record two letters expressing appreciation for my having introduced
S. 1270, the Secure Annuities for Employees--SAFE--Retirement Act of
2013. One is from the National Association of Insurance Commissioners
and the other is from the National Organization of Life and Health
Insurance Guaranty Associations.
There being no objection, the material was ordered to be printed in
the Record, as follows:
National Association of
Insurance Commissioners,
Washington, DC, July 2, 2013.
Hon. Orrin G. Hatch,
Ranking Member, U.S. Senate Committee on Finance, Dirksen
Senate Office Building, Washington, DC.
Dear Ranking Member Hatch: I write on behalf of the
National Association of Insurance Commissioners (NAIC)\1\ to
express our appreciation for your reaching out to the NAIC
with respect to your legislative proposal to address pension
issues and retirement planning needs. We also appreciate your
long history of support for state-based insurance regulation.
We note that the draft bill would rely on state insurance
regulators' oversight of the life insurance and annuities
industry. State insurance regulators have a strong track
record of protecting policyholders by ensuring the solvency
of insurers and ensuring policyholders are treated fairly. We
appreciate your leadership in seeking to find solutions to
our nation's retirement and lifetime income needs, and we
look forward to continuing to work with you as you move
forward with your legislation.
Sincerely,
Commissioner James J. Donelon,
NAIC President and Louisiana Insurance Commissioner.
\1\ The NAIC is the U.S. standard-setting and regulatory
support organization created and governed by the chief
insurance regulators from the 50 states, the District of
Columbia and the five U.S. territories. Through the NAIC,
state insurance regulators establish standards and best
practices, conduct peer review, and coordinate their
regulatory oversight. NAIC members, together with the central
resources of the NAIC, form the national system of state-
based insurance regulation in the U.S.
____
National Organization of Life and Health Insurance
Guaranty Associations,
Herndon, VA, July 4, 2013.
Hon. Orrin G. Hatch,
Ranking Member, U.S. Senate Committee on Finance, Dirksen
Senate Office Building, Washington, DC.
Dear Ranking Member Hatch: I write to offer my personal
thanks to you for supporting the prudent use of annuities to
help meet Americans' retirement needs.
Secure lifetime retirement income is a priority for
Americans. Annuities are an important option that should be
considered as part of the solution for meeting this need.
Annuities historically have proven to be safe and prudent
components of a sound financial plan, thanks to the efforts
of a financially conservative insurance industry, effective
regulation, and an established consumer safety net system.
You and your colleagues are to be lauded for encouraging
the consideration of annuities to help Americans meet their
overall retirement security objectives.
In my personal opinion, facilitating the consideration of
annuities to help achieve secure, lifetime retirement income
will redound significantly to the benefit of both individual
retirees and the overall American economy, and I appreciate
your leadership on this important matter.
Sincerely,
Peter G. Gallanis,
President.
____________________