[Congressional Record (Bound Edition), Volume 159 (2013), Part 8]
[Senate]
[Pages 11569-11570]
[From the U.S. 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

[[Page 11570]]

     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 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.

                          ____________________