[House Report 107-733]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-733

======================================================================



 
              RETIREMENT SAVINGS AND SECURITY ACT OF 2002

                                _______
                                

   October 10 (legislative day, October 9), 2002.--Committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed

                                _______
                                

    Mr. Thomas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5558]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5558) to amend the Internal Revenue Code of 1986 to 
accelerate the increases in contribution limits to retirement 
plans and to increase the required beginning date for 
distributions from qualified plans, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. Summary and Background...........................................3
          A. Purpose and Summary.................................     3
          B. Background and Need for Legislation.................     3
          C. Legislative History.................................     3
 II. Explanation of the Bill..........................................4
          A. Acceleration of Increases in IRA Contribution Limit.     4
          B. Acceleration of Scheduled Increases in Pension Plan 
              Contribution Limits................................     4
          C. Updating of the Minimum Distribution Rules..........     6
III. Votes of the Committee...........................................8
 IV. Budget Effects of the Bill.......................................9
          A. Committee Estimate of Budgetary Effects.............     9
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................    11
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................    11
  V. Other Matters To Be Discussed Under the Rules of the House......12
          A. Committee Oversight Findings and Recommendations....    12
          B. Statement of General Performance Goals and 
              Objectives.........................................    12
          C. Constitutional Authority Statement..................    13
          D. Information Relating to Unfunded Mandates...........    13
          E. Applicability of House Rule XXI 5(b)................    13
          F. Tax Complexity Analysis.............................    13
 VI. Changes in Existing Law Made by the Bill, as Reported...........13
VII. Dissenting Views................................................19
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Retirement Savings and Security Act of 
2002''.

SEC. 2. ACCELERATION OF INCREASES IN IRA CONTRIBUTION LIMIT.

  (a) Deductible Amount.--Subparagraph (A) of section 219(b)(5) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                  ``(A) In general.--The deductible amount shall be 
                $5,000.''.
  (b) Catch-Up Amount.--Subparagraph (B) of section 219(b)(5) of such 
Code is amended to read as follows:
                  ``(B) Catch-up contributions for individuals 50 or 
                older.--In the case of an individual who has attained 
                the age of 50 before the close of the taxable year, the 
                dollar amount in effect under paragraph (1)(A) for such 
                taxable year (determined without regard to this 
                paragraph) shall be increased by $1,000.''.
  (c) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2002.

SEC. 3. ACCELERATION OF SCHEDULED INCREASES IN PENSION PLAN 
                    CONTRIBUTION LIMITS.

  (a) Elective Deferrals.--Subparagraph (B) of section 402(g)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``the amount 
determined'' and all that follows and inserting ``$15,000.''.
  (b) Deferred Compensation Plans of State and Local Governments and 
Tax-Exempt Organizations.--Subparagraph (A) of section 457(e)(15) of 
such Code is amended by striking ``the amount determined'' and all that 
follows and inserting ``$15,000.''.
  (c) Simple Retirement Accounts.--Clause (i) of section 408(p)(2)(E) 
of such Code is amended by striking ``the amount determined'' and all 
that follows and inserting ``$10,000.''.
  (d) Catch-Up Contributions.--Subparagraph (B) of section 414(v)(2) of 
such Code is amended--
          (1) in clause (i) by striking ``determined'' and all that 
        follows and inserting ``$5,000.'', and
          (2) in clause (ii) by striking ``determined'' and all that 
        follows and inserting ``$2,500.''.
  (e) Effective Date.--The amendments made by this section shall apply 
to years beginning after December 31, 2002.

SEC. 4. SIMPLIFICATION AND UPDATING OF THE MINIMUM DISTRIBUTION RULES.

  (a) Required Distributions.--
          (1) Increase in age for required beginning date.--
        Subparagraphs (C)(i)(I) and (C)(ii)(I) of section 401(a)(9) of 
        the Internal Revenue Code of 1986 are each amended by striking 
        ``age 70\1/2\'' and inserting ``the applicable age''.
          (2) Applicable age.--Subparagraph (C) of section 401(a)(9) of 
        such Code is amended by inserting at the end the following new 
        clause:
                          ``(v) Applicable age.--The applicable age 
                        shall be determined in accordance with the 
                        following table:

                ``Calendar year:
                                                     Applicable age is:
                  2003 and 2004............................         73 
                  2005 and 2006............................         74 
                  2007 and thereafter......................       75.''
          (3) Spouse beneficiaries.--Subclause (I) of section 
        401(a)(9)(B)(iv) is amended by striking ``age 70\1/2\'' and 
        inserting ``the applicable age''.
          (4) Actuarial adjustment of benefit under defined benefit 
        plan.--Clause (iii) of section 401(a)(9)(C) of such Code is 
        amended to read as follows:
                          ``(iii) Actuarial adjustment.--
                                  ``(I) In general.--In the case of a 
                                defined benefit plan, an employee's 
                                accrued benefit shall be actuarially 
                                increased to take into account the 
                                period after the applicable date during 
                                which the employee was not eligible to 
                                receive any benefits under the plan.
                                  ``(II) Applicable date.--For purposes 
                                of clause (I), the term `applicable 
                                date' means the April 1st following the 
                                calendar year in which the employee 
                                attains age 70\1/2\.''.
  (b) Effective Date.--
          (1) In general.--The amendments made by this section shall 
        apply to years beginning after December 31, 2002.
          (2) Transition.--A plan shall not be treated as failing to 
        meet the requirements of section 401(a)(9) of the Internal 
        Revenue Code of 1986 merely because, in years beginning after 
        December 31, 2002, no distribution is made to an employee 
        before the employee's required beginning date, as determined in 
        accordance with the amendments made by this section.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 5558, as amended (the ``Retirement Savings 
and Security Act of 2002'') modifies the tax laws to provide 
increased opportunity for saving for retirement.
    The bill accelerates the increases in the regular and 
catch-up contribution limits to individual retirement 
arrangements (``IRAs''), qualified cash or deferred 
arrangements and similar plans. This will allow individuals 
greater opportunity for tax-favored retirement saving.
    The bill also increases incrementally the age at which 
distributions from tax-favored retirement plans generally must 
begin from 70\1/2\ to 75. This will provide individuals with 
more flexibility and control over their retirement savings.

                 B. Background and Need for Legislation

    The provisions approved by the Committee reflect the need 
to provide Americans with opportunities to increase retirement 
saving and improve retirement income security.

                         C. Legislative History


                            COMMITTEE ACTION

    The Committee on Ways and Means marked up the provisions of 
the bill on October 7 and 8, 2002, and approved the provisions, 
as amended, on October 8, 2002, by a roll call vote of 24 yeas 
to 10 nays (with a quorum being present).

                           committee hearings

    The Committee has held a number of hearings relating to 
retirement income security.
    The full Committee held a hearing on Retirement Security 
and Defined Contribution plans on February 19, 2002. The 
Oversight Subcommittee held a hearing on Retirement Security 
and Defined Benefit Plans on June 20, 2002, and a hearing on 
Employer and Employee Views on Retirement Security on March 5, 
2002.

                      II. EXPLANATION OF THE BILL


         A. Acceleration of Increases in IRA Contribution Limit


                              PRESENT LAW

    Under present law, the maximum annual limit on 
contributions to individual retirement arrangements (``IRAs'') 
is $3,000 for 2002-2004, $4,000 for 2005-2007, and $5,000 for 
2008 \1\ and thereafter. The $5,000 limit is indexed for 
inflation after 2008.
---------------------------------------------------------------------------
    \1\ For years after 2010, the limit is $2,000, pursuant to the 
general sunset provision of the Economic Growth and Tax Relief 
Reconciliation Act of 2001.
---------------------------------------------------------------------------
    For individuals who have attained age 50, the maximum 
annual limit on IRA contributions is increased by $500 in 2002-
2005 and $1,000 in 2006 and thereafter.\2\
---------------------------------------------------------------------------
    \2\ For years after 2010, the catch-up provision expires, pursuant 
to the general sunset provision of the Economic Growth and Tax Relief 
Reconciliation Act of 2001.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Economic Growth and Tax Relief Reconciliation Act of 
2001 increased the contribution limits for IRAs and added the 
special catch-up contributions for individuals age 50 and 
older. These limits were increased in order to allow workers to 
accumulate greater retirement savings and, in the case of 
catch-up contributions, to allow individuals who may have 
missed retirement savings opportunities earlier in their 
careers to be able to accumulate sufficient retirement savings. 
These provisions were enacted on a phased-in basis due to 
budgetary constraints. The Committee remains concerned about 
the adequacy of retirement savings, and believes that 
accelerating the previously enacted limits will increase 
retirement security.

                        EXPLANATION OF PROVISION

    The bill accelerates the increase in the maximum annual 
limit on contributions so that the limit is $5,000 for 2003 and 
thereafter. The bill also accelerates the increase in the 
catch-up contribution limit so that it is $1,000 in 2003 and 
thereafter. The $5,000 limit is indexed for inflation after 
2008, as under present law.\3\
---------------------------------------------------------------------------
    \3\ These provisions are permanent.
---------------------------------------------------------------------------

                             EFFECTIVE DATE

    The provision is effective for taxable years beginning 
after December 31, 2002.

  B. Acceleration of Scheduled Increases in Pension Plan Contribution 
                                 Limits


                              PRESENT LAW

    The annual dollar limit on elective deferrals under 
qualified cash or deferred arrangements (sec. 401(k)), tax-
sheltered annuities (sec. 403(b)), and salary reduction 
simplified employee pensions (``SEPs'') is $11,000 in 2002. 
This limit is scheduled to increase so that it is $15,000 in 
2006, with indexing thereafter.
    The maximum annual elective deferrals that may be made to a 
SIMPLE plan is $7,000 in 2002. This limit is scheduled to 
increase so that it is $10,000 in 2005, with indexing 
thereafter.
    The dollar limit on deferrals under an eligible deferred 
compensation plan of a tax-exempt or State or local government 
employer (sec. 457) is $11,000 in 2002. This limit is scheduled 
to increase until it is $15,000 in 2006, with indexing 
thereafter.
    Present law provides that individuals who have attained age 
50 may make additional catch-up contributions to qualified cash 
or deferred arrangements, tax-sheltered annuities, salary 
reduction SEPs, and section 457 plans of up to $1,000 in 2002. 
This amount is scheduled to increase to $5,000 in 2006, with 
indexing thereafter. Individuals who have attained age 50 may 
make additional catch-up contributions to a SIMPLE plan of up 
to $500 in 2002. This amount is scheduled to increase to $2,500 
in 2006, with indexing thereafter.\4\
---------------------------------------------------------------------------
    \4\ For years after 2010, the catch-up contribution provision 
expires and the elective deferral limits revert to the limits in effect 
prior to the Economic Growth and Tax Relief Reconciliation Act of 2001 
pursuant to the general sunset provision of that Act.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Economic Growth and Tax Relief Reconciliation Act of 
2001 increased the contribution limits for cash or deferred 
arrangements and similar plans and added the special catch-up 
contributions for individuals age 50 and over. These limits 
were increased in order to provide greater savings alternatives 
and, in the case of catch-up contributions, to allow 
individuals who may have missed retirement savings 
opportunities earlier in their careers to be able to accumulate 
sufficient retirement savings. These provisions were enacted on 
a phased-in basis due to budgetary constraints. The Committee 
remains concerned about the adequacy of retirement savings, and 
believes that accelerating the previously enacted limits will 
increase retirement security.

                        EXPLANATION OF PROVISION

    The bill accelerates the increase in the limit on elective 
deferrals generally to $15,000, increases the limit on elective 
deferrals under SIMPLE plans to $10,000, and increases the 
dollar limit on deferrals under a section 457 plan to $15,000 
for 2003 and thereafter. These dollar amounts are indexed for 
inflation after 2006, as under present law.
    For 2003 and thereafter, the bill accelerates the increase 
in the maximum catch-up contribution for qualified cash or 
deferred arrangements, tax-sheltered annuities, salary 
reduction SEPs, and section 457 plans to $5,000 and increases 
the maximum catch-up contribution for SIMPLE plans to 
$2,500.\5\ These dollar amounts are indexed for inflation after 
2006, as under present law.
---------------------------------------------------------------------------
    \5\ The changes made by the provision are permanent.
---------------------------------------------------------------------------

                             EFFECTIVE DATE

    The provision is effective for years beginning after 
December 31, 2002.

             C. Updating of the Minimum Distribution Rules


                              PRESENT LAW

In general

    Minimum distribution rules apply to all types of tax-
favored retirement arrangements, including qualified retirement 
plans and annuities, individual retirement arrangements 
(``IRAs''), tax-sheltered annuity plans (``section 403(b) 
plans''), and eligible deferred compensation plans of tax-
exempt and State and local government employers (``section 457 
plans''). In general, under these rules, distribution of 
minimum benefits must begin no later than the required 
beginning date. Minimum distribution rules also apply to 
benefits payable with respect to a plan participant who has 
died. Failure to comply with the minimum distribution rules 
results in an excise tax imposed on the individual plan 
participant equal to 50 percent of the required minimum 
distribution not distributed for the year. The excise tax may 
be waived if the individual establishes to the satisfaction of 
the Secretary of the Treasury that the shortfall in the amount 
distributed was due to reasonable error and reasonable steps 
are being taken to remedy the shortfall. Under certain 
circumstances following the death of a participant, the excise 
tax is automatically waived under Treasury regulations.

Distributions prior to the death of the individual

    In the case of distributions prior to the death of the plan 
participant, the minimum distribution rules are satisfied if 
either (1) the participant's entire interest in the plan is 
distributed by the required beginning date, or (2) the 
participant's interest in the plan is to be distributed (in 
accordance with regulations), beginning not later than the 
required beginning date, over a permissible period. The 
permissible periods are (1) the life of the participant, (2) 
the lives of the participant and a designated beneficiary, (3) 
the life expectancy of the participant, or (4) the joint life 
and last survivor expectancy of the participant and a 
designated beneficiary. In calculating minimum required 
distributions from account-type arrangements (e.g., a defined 
contribution plan or an individual retirement account), life 
expectancies of the participant and the participant's spouse 
generally may be recomputed annually.
    In the case of qualified retirement plans and annuities, 
section 403(b) plans, and section 457 plans, the required 
beginning date generally is April 1 of the calendar year 
following the later of (1) the calendar year in which the 
participant attains age 70\1/2\ or (2) the calendar year in 
which the participant retires. However, in the case of a five-
percent owner of the employer, distributions generally are 
required to begin no later than April 1 of the calendar year 
following the year in which the five-percent owner attains age 
70\1/2\. If commencement of distributions from a defined 
benefit plan is delayed beyond age 70\1/2\ (i.e., in the case 
of a participant who has not retired), then the accrued benefit 
of the participant must be actuarially increased to take into 
account the period after age 70\1/2\ in which the participant 
was not receiving benefits under the plan.\6\ In the case of 
distributions from an IRA other than a Roth IRA, the required 
beginning date is the April 1 of the calendar year following 
the calendar year in which the IRA owner attains age 70\1/2\. 
The pre-death minimum distribution rules do not apply to Roth 
IRAs.
---------------------------------------------------------------------------
    \6\ State and local government plans and church plans are not 
required to actuarially increase benefits that begin after age 70\1/2\.
---------------------------------------------------------------------------
    In general, under Treasury regulations, in order to satisfy 
the minimum distribution rules, annuity payments under a 
defined benefit plan must be paid in periodic payments made at 
intervals not longer than one year over a permissible period, 
and must be nonincreasing, or increase only as a result of the 
following: (1) cost-of-living adjustments; (2) cash refunds of 
employee contributions; (3) benefit increases under the plan; 
or (4) an adjustment due to death of the employee's 
beneficiary. In the case of a defined contribution plan, the 
minimum required distribution is determined by dividing the 
employee's benefit by an amount from the uniform table provided 
in the regulations.

Distributions after the death of the plan participant

    The minimum distribution rules also apply to distributions 
to beneficiaries of deceased participants. In general, if a 
participant dies after minimum distributions have begun, the 
remaining interest must be distributed at least as rapidly as 
under the minimum distribution method being used as of the date 
of death. If the participant dies before minimum distributions 
have begun, then the entire remaining interest must generally 
be distributed within five years of the participant's death. 
The five-year rule does not apply if distributions begin within 
one year of the participant's death and are payable over the 
life of a designated beneficiary or over the life expectancy of 
a designated beneficiary.
    A surviving spouse beneficiary is not required to begin 
distributions until the date the deceased participant would 
have attained age 70\1/2\. In addition, a surviving spouse 
generally has the option of rolling over his or her interest in 
the plan or IRA to a plan in which the spouse is a participant 
or to an IRA established for his or her benefit. In that case, 
the minimum distribution rules are applied to the plan or IRA 
on the basis of the surviving spouse's age.

                           REASONS FOR CHANGE

    The minimum distribution rules reflect the view that tax-
favored savings should be used primarily for retirement income. 
However, the minimum distribution rules impose considerable 
complexity on pension plan participants and IRA owners. In 
addition, the present-law required beginning date may cause 
some individuals to take distributions that they do not 
currently need for retirement income, thereby possibly 
depleting funds that may be needed in the future.

                        EXPLANATION OF PROVISION

    The bill increases the age at which distributions to a 
participant must begin to 73 in 2003 and 2004, 74 in 2005 and 
2006, and 75 in 2007 and thereafter. Thus, a participant 
generally is not required to begin receiving distributions 
until April 1 of the calendar year following the later of (1) 
the calendar year in which the participant attains the 
applicable age or (2) the calendar year in which the 
participant retires. In the case of a five-percent owner of the 
employer, distributions are required to begin no later than 
April 1 of the calendar year following the year in which the 
five-percent owner attains the applicable age. The change in 
age also applies for purposes of distributions to surviving 
spouses.
    The bill revises the rule relating to actuarial adjustments 
to the accrued benefit under a defined benefit plan when 
commencement of benefits is delayed beyond age 70\1/2\. Under 
the provision, a participant's accrued benefit under a defined 
benefit plan must be actuarially increased to take into account 
the period during which the participant is not eligible to 
receive benefits under the plan. For this purpose, the relevant 
period begins April 1 following the calendar year in which the 
participant attains age 70\1/2\.

                             EFFECTIVE DATE

    The provision is effective for years beginning after 
December 31, 2002. Under a transition rule, a plan or IRA is 
not treated as failing to meet the minimum distribution 
requirements merely because, in years after 2002, it does not 
make a distribution before a participant's required beginning 
date as determined under the proposal. As a result, a 
participant who attains age 70 \1/2\ before 2003 need not 
receive distributions in years after 2002 until his or her 
required beginning date under the provision. For example, a 
participant who attains age 70\1/2\ in 2002 and who is required 
under present law to receive a distribution by April 1, 2003, 
may delay the distribution until his or her required beginning 
date as determined under the provision. In addition, a 
participant who began receiving required distributions before 
2003 and whose required beginning date under the provision is 
after 2004, is not required to receive additional distributions 
until that required beginning date.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of the bill, H.R. 5558.

                       MOTION TO REPORT THE BILL

    The bill, H.R. 5558, as amended, was ordered favorably 
reported by a roll call vote of 24 yeas to 10 nays (with a 
quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
        Representatives             Yea       Nay     Present     Representative       Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Thomas.....................        X   ........  .........  Mr. Rangel........  ........         X   .......
Mr. Crane......................        X   ........  .........  Mr. Stark.........  ........         X   .......
Mr. Shaw.......................        X   ........  .........  Mr. Matsui........  ........         X   .......
Mrs. Johnson...................        X   ........  .........  Mr. Coyne.........  ........         X   .......
Mr. Houghton...................        X   ........  .........  Mr. Levin.........        X   .........  .......
Mr. Herger.....................        X   ........  .........  Mr. Cardin........  ........         X   .......
Mr. McCrery....................        X   ........  .........  Mr. McDermott.....        X   .........
Mr. Camp.......................        X   ........  .........  Mr. Kleczka.......  ........         X   .......
Mr. Ramstad....................        X   ........  .........  Mr. Lewis (GA)....  ........  .........  .......
Mr. Nussle.....................        X   ........  .........  Mr. Neal..........  ........  .........  .......
Mr. Johnson....................        X   ........  .........  Mr. McNulty.......  ........  .........  .......
Ms. Dunn.......................        X   ........  .........  Mr. Jefferson.....  ........  .........  .......
Mr. Collins....................        X   ........  .........  Mr. Tanner........  ........         X   .......
Mr. Portman....................        X   ........  .........  Mr. Becerra.......  ........         X   .......
Mr. English....................        X   ........  .........  Mrs. Thurman......  ........         X   .......
Mr. Watkins....................        X   ........  .........  Mr. Doggett.......  ........  .........  .......
Mr. Hayworth...................        X   ........  .........  Mr. Pomeroy.......  ........         X   .......
Mr. Weller.....................        X   ........  .........  ..................  ........  .........  .......
Mr. Hulshof....................        X   ........  .........  ..................  ........  .........  .......
Mr. McInnis....................        X   ........  .........  ..................  ........  .........  .......
Mr. Lewis (KY).................        X   ........  .........  ..................  ........  .........  .......
Mr. Foley......................        X   ........  .........  ..................  ........  .........  .......
Mr. Brady......................        X   ........  .........  ..................  ........  .........  .......
Mr. Ryan.......................        X   ........  .........  ..................  ........  .........  .......
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of the rule XIII of the 
Rules of the House of Representatives, the following statement 
is made concerning the effects on the budget of the revenue 
provisions of the bill, H.R. 5558 as reported.
    The bill is estimated to have the following effects on 
budget receipts for fiscal years 2003-2007:

  ESTIMATED REVENUE EFFECTS OF A CHAIRMAN'S AMENDMENT IN THE NATURE OF A SUBSTITUTE TO H.R. 5558, THE ``RETIREMENT SAVINGS AND SECURITY ACT OF 2002,'' SCHEDULED FOR MARKUP BY THE COMMITTEE ON
                                                                                WAYS AND MEANS ON OCTOBER 7, 2002
                                                                        [Fiscal years 2003-2012, in millions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                Provision                     Effective        2003       2004       2005       2006       2007       2008       2009       2010       2011       2012      2003-07     2003-12
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1. Accelerate scheduled increase in IRA     tyba 12/31/02        -389       -893       -877       -764       -838       -825       -779       -833     -1,760     -2,989      -3,760     -10,946
 contribution limit to $5,000 and IRA
 catch-up contribution limit of $1,000..
2. Accelerate scheduled increase in          yba 12/31/02        -322       -417       -257       -127       -110       -115       -116       -123       -982     -1,415      -1,234      -3,985
 limit on elective deferrals (and
 deferrals under section 457 plan) to
 $15,000 and increase in limit on
 elective deferrals under SIMPLE plans
 to $10,000; accelerate scheduled
 increase in maximum catch-up
 contributions to $5,000 and increase in
 maximum catch-up for SIMPLE plans to
 $2,500.................................
3. Increase required beginning date for      yba 12/31/02        -894     -1,702     -1,561     -2,250     -2,760     -3,114     -3,462     -3,368     -3,592     -3,843      -9,167     -26,547
 mandatory distributions from an IRA or
 pension plan from age 70\1/2\ to: 73 in
 2003 and 2004, 74 in 2005 and 2006, and
 75 in 2007 and thereafter..............
4. Technical change to conform the age       yba 12/31/02                                                             No revenue effect
 at which required distributions must
 begin to a surviving spouse to the age
 at which required distributions must
 begin to the employee..................
                                                           -------------------------------------------------------------------------------------------------------------------------------------
      Net total.........................  ................     -1,605     -3,012     -2,695     -3,141     -3,708     -4,054     -4,357     -4,324     -6,334     -8,247     -14,161     -41,478
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Legend for ``Effective'' column: tyba=taxable years beginning after; yba=years beginning after.

Note.--Details may not add to totals due to rounding.

Source: Joint Committee on Taxation.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority (as detailed 
in the statement by the Congressional Budget Office (``CBO''); 
see Part IV.C., below). The Committee further states that the 
revenue reducing income tax provisions involve increased tax 
expenditures. (See amounts in table in Part IV.A., above.)

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 9, 2002.
Hon. William ``Bill'' M. Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5558, the 
Retirement Savings and Security Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Annie 
Bartsch.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 5558--Retirement Savings and Security Act 2002

    Summary: H.R. 5558 would make several changes to retirement 
plan provisions of the Internal Revenue Code of 1986. First, 
H.R. 5558 would accelerate the increase in the maximum annual 
limit on contributions to individual retirement arrangements 
(IRAs) so that it is $5,000 starting in 2003, indexed for 
inflation after 2008. Under current law, the maximum limit is 
not scheduled to reach $5,000 until 2008. H.R. 5558 would also 
accelerate the increases in the maximum annual dollar limit on 
elective deferrals generally (including those under sections 
401(k) and 403(b), and salary reduction simplified employee 
pensions (SEPs)) to $15,000 in 2003, on elective deferrals 
under SIMPLE plans to $10,000 in 2003, and on deferrals under 
section 457 to $15,000 in 2003. These dollar amounts would be 
indexed for inflation after 2006.
    The bill also would increase the maximum catch-up 
contribution for qualified cash or deferred arrangements, tax-
sheltered annuities, salary reduction SEPs and section 457 
plans to $5,000 and increase the maximum catch-up contribution 
for SIMPLE plans to $2,500. These dollar amounts would also be 
indexed for inflation after 2006.
    Finally, for all types of tax-favored retirement 
arrangements, H.R. 5558 would increase the age of the 
participant at which distributions must begin to 73 in 2003 and 
2004, 74 in 2005 and 2006, and 75 in 2007 and thereafter. Under 
current law, distributions must begin generally no later than 
when the participant turns 70-1/2
    The Joint Committee on Taxation (JCT) estimates that 
enacting H.R. 5558 would reduce revenues by $1.6 billion in 
2003, by $14.2 billion over the 2003-2007 period, and by $41.5 
billion over the 2003-2012 period. JCT had determined that the 
bill contains no intergovernmental or private-sector mandates 
as defined in the Unfunded Mandates Reform Act (UMRA) and would 
not affect the budgets of state, local, or tribal governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 5558 is shown in the following table. 
All revenue estimates of H.R. 5558 were provided by JCT.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                               2003       2004       2005       2006       2007       2008       2009       2010       2011       2012
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CHANGES IN REVENUES

Acceleration of increases in IRA                 -389       -893       -877       -764       -838       -825       -779       -833     -1,760     -2,989
 contribution limit.......................
Acceleration of scheduled increases in           -322       -417       -257       -127       -110       -115       -116       -123       -982     -1,415
 pension plan contribution limits.........
Updating of minimum distribution rules....       -894     -1,702     -1,561     -2,250     -2,760     -3,114     -3,462     -3,368     -3,592     -3,843

      Total estimated changes in revenues.     -1,605     -3,012     -2,695     -3,141     -3,708     -4,054     -4,357     -4,324     -6,334     -8,247
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Joint Committee on Taxation

    Intergovernmental and private-sector impact: JCT has 
determined that the bill contains no intergovernmental or 
private-sector mandates as defined in UMRA and would not affect 
the budgets of state, local, or tribal governments.
    Estimate prepared by: Annie Bartsch.
    Estimate approved by: Roberton Williams, Deputy Assistant 
Director for Tax Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was a result of the Committee's 
oversight review concerning the need for retirement security 
and the effect of tax-favored savings on attaining such 
security that the Committee concluded that it is appropriate 
and timely to enact the revenue provisions included in the bill 
as reported.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

                 C. Constitutional Authority Statement

    With respect to clause 3(d)(1) of the rule XIII of the 
Rules of the House of Representatives (relating to 
Constitutional Authority), the Committee states that the 
Committee's action in reporting this bill is derived from 
Article I of the Constitution, Section 8 (``The Congress shall 
have Power to lay and collect Taxes, Duties, Imposts and 
Excises * * *''), and from the 16th Amendment to the 
Constitution.

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Act of 1995 (P.L. 104-4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, and tribal 
governments.

                E. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the provisions of the bill, and states that 
the provisions of the bill do not involve any Federal income 
tax rate increases within the meaning of the rule.

                       F. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the 
Joint Committee on Taxation (in consultation with the Internal 
Revenue Service and the Department of Treasury) to provide a 
tax complexity analysis. The complexity analysis is required 
for all legislation reported by the House Committee on Ways and 
Means, the Senate Committee on Finance, or any committee of 
conference if the legislation includes a provision that 
directly or indirectly amends the Internal Revenue Code and has 
widespread applicability to individuals or small businesses.
    The staff of the Joint Committee on Taxation has determined 
that a complexity analysis is not required under section 
4022(b) of the IRS Reform Act because the bill contains no 
provisions that amend the Internal Revenue Code and that have 
``widespread applicability'' to individuals or small 
businesses.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *



Subtitle A--Income Taxes

           *       *       *       *       *       *       *


CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *


Subchapter B--Computation of Taxable Income

           *       *       *       *       *       *       *


PART VII--ADDITIONAL ITEMIZED DEDUCTIONS FOR INDIVIDUALS

           *       *       *       *       *       *       *



SEC. 219. RETIREMENT SAVINGS.

  (a) * * *
  (b) Maximum Amount of Deduction.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Deduction amount.--For purposes of paragraph 
        (1)(A)--
                  [(A) In general.--The deductible amount shall 
                be determined in accordance with the following 
                table:

        [For taxable years                                The deductible
          beginning in:                                     amount is:  
          2002 through 2004...................................   $3,000 
          2005 through 2007...................................   $4,000 
          2008 and thereafter.................................   $5,000.
                  [(B) Catch-up contributions for individuals 
                50 or older.--
                          [(i) In general.--In the case of an 
                        individual who has attained the age of 
                        50 before the close of the taxable 
                        year, the deductible amount for such 
                        taxable year shall be increased by the 
                        applicable amount.
                          [(ii) Applicable amount.--For 
                        purposes of clause (i), the applicable 
                        amount shall be the amount determined 
                        in accordance with the following table:
        [For taxable years                                The applicable
          beginning in:                                     amount is:  
          2002 through 2005...................................     $500 
          2006 and thereafter.................................  $1,000.]

                  (A) In general.--The deductible amount shall 
                be $5,000.
                  (B) Catch-up contributions for individuals 50 
                or older.--In the case of an individual who has 
                attained the age of 50 before the close of the 
                taxable year, the dollar amount in effect under 
                paragraph (1)(A) for such taxable year 
                (determined without regard to this paragraph) 
                shall be increased by $1,000.

           *       *       *       *       *       *       *


Subchapter D--Deferred Compensation, Etc.

           *       *       *       *       *       *       *


PART I--PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC.

           *       *       *       *       *       *       *


Subpart A--General Rule

           *       *       *       *       *       *       *


SEC. 401. QUALIFIED PENSION, PROFIT-SHARING, AND STOCK BONUS PLANS.

  (a) Requirements for Qualification.--A trust created or 
organized in the United States and forming part of a stock 
bonus, pension, or profit-sharing plan of an employer for the 
exclusive benefit of his employees or their beneficiaries shall 
constitute a qualified trust under this section--
          (1) * * *

           *       *       *       *       *       *       *

          (9) Required distributions.--
                  (A) * * *
                  (B) Required distribution where employee dies 
                before entire interest is distributed.--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iv) Special rule for surviving 
                        spouse of employee.--If the designated 
                        beneficiary referred to in clause 
                        (iii)(I) is the surviving spouse of the 
                        employee--
                                  (I) the date on which the 
                                distributions are required to 
                                begin under clause (iii)(III) 
                                shall not be earlier than the 
                                date on which the employee 
                                would have attained [age 70\1/
                                2\] the applicable age, and

           *       *       *       *       *       *       *

                  (C) Required beginning date.--For purposes of 
                this paragraph--
                          (i) In general.--The term ``required 
                        beginning date'' means April 1 of the 
                        calendar year following the later of--
                                  (I) the calendar year in 
                                which the employee attains [age 
                                70\1/2\] the applicable age, or

           *       *       *       *       *       *       *

                          (ii) Exception.--Subclause (II) of 
                        clause (i) shall not apply--
                                  (I) except as provided in 
                                section 409(d), in the case of 
                                an employee who is a 5-percent 
                                owner (as defined in section 
                                416 with respect to the plan 
                                year ending in the calendar 
                                year in which the employee 
                                attains [age 70\1/2\] the 
                                applicable age, or

           *       *       *       *       *       *       *

                          [(iii) Actuarial adjustment.--In the 
                        case of an employee to whom clause 
                        (i)(II) applies who retires in a 
                        calendar year after the calendar year 
                        in which the employee attains age 70\1/
                        2\, the employee's accrued benefit 
                        shall be actuarially increased to take 
                        into account the period after age 70\1/
                        2\ in which the employee was not 
                        receiving any benefits under the plan.]
                          (iii) Actuarial adjustment.--
                                  (I) In general.--In the case 
                                of a defined benefit plan, an 
                                employee's accrued benefit 
                                shall be actuarially increased 
                                to take into account the period 
                                after the applicable date 
                                during which the employee was 
                                not eligible to receive any 
                                benefits under the plan.
                                  (II) Applicable date.--For 
                                purposes of clause (I), the 
                                term ``applicable date'' means 
                                the April 1st following the 
                                calendar year in which the 
                                employee attains age 70\1/2\.

           *       *       *       *       *       *       *

                          (v) Applicable age.--The applicable 
                        age shall be determined in accordance 
                        with the following table:

            Calendar year:                            Applicable age is:
          2003 and 2004.......................................       73 
          2005 and 2006.......................................       74 
75.     2007 and thereafter.................................

           *       *       *       *       *       *       *


SEC. 402. TAXABILITY OF BENEFICIARY OF EMPLOYEES' TRUST.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Limitation on Exclusion for Elective Deferrals.--
          (1) In general--
                  (A) * * *
                  (B) Applicable dollar amount.--For purposes 
                of subparagraph (A), the applicable dollar 
                amount shall be [the amount determined in 
                accordance with the following table:
        [For taxable years                                The applicable
          beginning in calendar year:                   dollar amount:  
  2002........................................................  $11,000 
  2003........................................................  $12,000 
  2004........................................................  $13,000 
  2005........................................................  $14,000 
  2006 or thereafter.......................................... $15,000.]

                $15,000.

           *       *       *       *       *       *       *


SEC. 408. INDIVIDUAL RETIREMENT ACCOUNTS.

  (a) * * *

           *       *       *       *       *       *       *

  (p) Simple Retirement Accounts.--
          (1) * * *
          (2) Qualified salary reduction arrangement.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) Applicable dollar amount; cost-of-living 
                adjustment.--
                          (i) In general.--For purposes of 
                        subparagraph (A)(ii), the applicable 
                        dollar amount shall be [the amount 
                        determined in accordance with the 
                        following table:

        [For years                                        The applicable
          beginning in dollar amount:                   calendar year:  
          2002................................................   $7,000 
          2003................................................   $8,000 
          2004................................................   $9,000 
          2005 or thereafter.................................. $10,000.]

                        $10,000.

           *       *       *       *       *       *       *


Subpart B--Special Rules

           *       *       *       *       *       *       *


SEC. 414. DEFINITIONS AND SPECIAL RULES.

  (a) * * *

           *       *       *       *       *       *       *

  (v) Catch-up Contributions for Individuals age 50 or Over--
          (1) * * *
          (2) Limitation on amount of additional deferrals.--
                  (A) * * *
                  (B) Applicable dollar amount.--For purposes 
                of this paragraph--
                          (i) In the case of an applicable 
                        employer plan other than a plan 
                        described in section 401(k)(11) or 
                        408(p), the applicable dollar amount 
                        shall be [determined in accordance with 
                        the following table:

        [For taxable years                                The applicable
          beginning in:                              dollar amount is:  
          2002................................................   $1,000 
          2003................................................   $2,000 
          2004................................................   $3,000 
          2005................................................   $4,000 
          2006 and thereafter.................................  $5,000.]

                        $5,000.
                          (ii) In the case of an applicable 
                        employer plan described in section 
                        401(k)(11) or 408(p), the applicable 
                        dollar amount shall be [determined in 
                        accordance with the following table:

        [For taxable years                                The applicable
          beginning in:                              dollar amount is:  
          2002................................................     $500 
          2003................................................   $1,000 
          2004................................................   $1,500 
          2005................................................   $2,000 
          2006 and thereafter.................................  $2,500.]

                        $2,500.

           *       *       *       *       *       *       *


Subchapter E--Accounting Periods and Methods of Accounting

           *       *       *       *       *       *       *


PART II--METHODS OF ACCOUNTING

           *       *       *       *       *       *       *


Subpart B--Taxable Year for Which Items of Gross Income Included

           *       *       *       *       *       *       *


SEC. 457. DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENTS 
                    AND TAX-EXEMPT ORGANIZATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Other definitions and Special Rules.--For purposes of 
this section--
          (1) * * *

           *       *       *       *       *       *       *

          (15) Applicable dollar amount.--
                  (A) In general.--The applicable dollar amount 
                shall be [the amount determined in accordance 
                with the following table:

[For taxable years
                                                                        
  beginning in
                                                          The applicable
  calendar year:
                                                          dollar amount:
  2002........................................................  $11,000 
  2003........................................................  $12,000 
  2004........................................................  $13,000 
  2005........................................................  $14,000 
  2006 or thereafter.......................................... $15,000.]
                $15,000

           *       *       *       *       *       *       *


                         VII. DISSENTING VIEWS

    The Democratic Members of this Committee would welcome an 
opportunity to engage in the process of producing bipartisan 
legislation to address the important issues confronting the 
American people today. There are many issues that demand our 
time and attention. However, we do not wish to waste precious 
time engaging in political posturing. H.R. 5558 has not been 
reported by this Committee in an effort to make law. The 
political nature of this effort is clear from the objectionable 
process under which the legislation has been brought forward.
    It is unacceptable protocol to have any serious action of 
the Committee announced after 4 p.m. on a Friday for Committee 
action the following Monday. As the Committee was well aware, 
many Members had already gone back to their district for the 
week without any knowledge of important matters to bring them 
back before Monday.
    Meaningful debate can occur only when Members are 
adequately prepared to discuss the issues being considered. 
Obviously, meaningful debate and consideration were not desired 
in this instance.
    We believe that the short time we have remaining in this 
congress is far too precious to be wasted in this manner. The 
state of the American economy, the number of uninsured 
Americans, the rising level of unemployment, the prohibitive 
cost of prescription drugs for our seniors, and the lack of 
security in our pension system--these are all issues that do 
not afford us the luxury of engaging in political charades.
    The legislation being reported by the Committee is ill-
timed. The provision to modify the age at which an individual 
is required to make minimum distributions from his or her 
Individual Retirement Account (IRA), while worthy of some 
discussion, does not rise to the level of immediacy that 
requires this type of action during the last days of the 
congressional session.
    We agree that changes in this area should be considered. 
However, we believe such changes should be examined as the 
Social Security reform debate moves forward. For example, one 
of the President's three privatization plans would effectively 
raise the retirement age for Social Security. This would, in 
turn, have an effect on the private pension system. These 
concerns also extend to the other provisions considered by the 
Committee that would permit increased contributions to IRAs and 
employer-sponsored defined contribution plans. We support the 
Committee's effort to move these issues forward through a 
deliberative legislative process including hearings, input from 
experts on pension issues, and an ongoing debate. We believe 
that it is appropriate to determine the impact these changes 
would have on our retirement system.
    Our country is in a state of economic decline. There has 
been negative economic growth for the past year. In the past 
nineteen months, projected surpluses of $5.6 trillion have 
totally disappeared. We are now back to deficit spending for 
the foreseeable future. We know that most of this change in 
circumstance is not attributable to the war efforts. As former 
Treasury Secretary Robert Rubin pointed out during his 
appearance on CNBC's ``After Hours with Maria Bartiromo'' on 
July 15, 2002, while addressing the issue of disappearing 
surpluses, a large part of the economic damage is due to the 
tax cut that was put in place last year, partly because of the 
cost, and partly because it undermined the political cohesion 
that had developed around fiscal discipline. We should not be 
enacting any further long term tax cuts. We cannot afford them.
    Our economy needs to be revived. We should be engaging in 
serious debate on how we can bring this about. To restore the 
economic confidence necessary to accomplish this goal, we need 
to get our fiscal house in order. We may have disagreements on 
how to do it but we at least owe it to the American people to 
have a bipartisan economic debate that puts everything on the 
table for discussion.
    The stock market has lost $4\1/2\ trillion in value in the 
last two years. This was due, in large measure, to the 
corporate corruption that has captured the headlines. It is 
irresponsible for us to end this Congress without any serious 
attempt to address these issues. While we will agree that 
Congress cannot legislate morality, we are obligated to take 
steps to ensure that corrupt corporate executives can not get 
away with millions in retirement benefits while average working 
Americans walk away with nothing more than an empty bag, a bag 
that once held a secured retirement and a job that enabled them 
to take care of their families.
    There has been no shortage of reports of corporate 
executives who have reaped millions of dollars acting on 
insider information to enrich themselves at the expense of 
thousands of rank-and-file employees. Executives from companies 
such as Enron and Global Crossing escaped their companies' 
bankruptcies with millions of dollars that could not be reached 
by the creditors of these companies. Yet many employees lost 
all their retirement savings in their 401(k) plans which were 
invested in the same company stock that made millions of 
dollars for the executives. These executives were rewarded for 
driving their companies into the ground. Yet, this Committee, 
which has jurisdiction over these issues, has made no attempt 
to address them.
    We welcome the opportunity to begin a serious debate on how 
we can resolve these issues. We would prefer to utilize the 
time spent on the legislation before us developing bipartisan 
legislation that would address these corporate abuse issues. 
Rep. Matsui has introduced two bills that would require 
corporations to act in a more responsible manner with respect 
to executive compensation. We would welcome any opportunity 
before this Congress adjourns to have this legislation 
considered and brought to a vote.
    The issue of prohibitive prescription drug costs also is 
very real. Few issues are of greater importance to Medicare 
beneficiaries than the issue of adding a prescription drug 
benefit to Medicare. The skyrocketing costs of prescription 
drugs affect all geographic, racial, and economic groups. 
Unfortunately, the Republicans have been unwilling to show the 
necessary leadership on this issue to enact a benefit bill this 
year. We believe that if we are serious about the state of this 
country and the issues that must be addressed it may not be too 
late to reach an acceptable resolution of this issue. We should 
not adjourn without passing legislation in this area. No 
Medicare beneficiary should have to choose between putting food 
on the table and paying for needed medications. Rather than use 
the Committee for political posturing, we need to occupy 
ourselves with the pressing issues affecting the lives of the 
American people.
    The unemployment situation is another issue we should be 
trying to resolve today. As of September 2002, there were 5.7 
million Americans unemployed. Many of these individuals are 
running out of unemployment benefits. These individuals need 
jobs. They have responsibilities for themselves and their 
families. But, the job market is stagnant. In addition, being 
unemployed all too often means being without health insurance 
coverage for yourself or your family members. How can we claim 
to be engaging in serious legislation when the Republican 
leadership consistently has failed to address these issues, or 
provide a forum for serious debate?
    With all the challenges our country is facing we should be 
working constantly to find solutions. Instead, we are being 
asked to engage in political grandstanding. This is not the 
time for such antics. We must report to the American people, 
and they will be listening for the report. We can not afford to 
engage in efforts that continue to ignore our serious domestic 
issues. Failure to act will exact a high price from us all, 
including our constituents.

                                   C.B. Rangel.
                                   Robert T. Matsui.
                                   Jerry Kleczka.
                                   Sander Levin.
                                   John Lewis.
                                   William J. Coyne.
                                   Ben Cardin.
                                   Pete Stark.
                                   Xavier Becerra.
                                   Jim McDermott.
                                   Earl Pomeroy.
                                   Richard E. Neal.
                                   William M. Jefferson.

                                
