Representatives Portman and Cardin Introduce Bipartisan Pension Bill

Washington, DC, March 16, 1999 - Representatives Rob Portman (R-OH) and Benjamin Cardin (D-MD) have introduced H.R. 1102, the "Comprehensive Retirement Security and Pension Reform Act of 1999," a wide-reaching and significant bipartisan bill. The Institute is preparing to submit testimony supporting the bill to the House Ways and Means Committee. Although differing in some detail, this bill is similar to the 1998 bill introduced by Representatives Portman and Cardin.

The bill is divided into five titles each focusing on a different theme as follows: (1) expanding coverage; (2) enhancing fairness for women and children, (3) increasing portability for plan participants, (4) strengthening pension security and enforcement, and (5) reducing regulatory burdens.

H.R. 1102 includes provisions that would:

  • increase portability among defined contribution pension plans by providing for rollovers among various plan types;
  • increase the dollar limitations on contributions to 401(k), 403(b), 457 and SIMPLE plans and raise the limitation on contributions to deductible IRAs;
  • repeal the 25%-of-compensation limitation on contributions to defined contribution plans and substantially increase the dollar limit for such contributions;
  • allow persons age 50 and older to increase by $5,000 their contributions to salary reduction plans;
  • modify top-heavy rules to make establishment of pension plans more attractive to small businesses;
  • allow a tax credit for small businesses to encourage them to establish retirement plans for their employees;
  • create new Roth 401(k) and 403(b) plans;
  • allow for a salary-reduction-only SIMPLE plan;
  • eliminate the user fee for small employers requesting determination letters from the IRS;
  • exempt the first $100,000 of defined contribution plan assets and IRA assets from the minimum distribution requirements;
  • increase the deduction limit placed on employers contributing to stock bonus and profit-sharing plans, including 401(k) plans; and
  • facilitate employer-provided education and counseling about retirement savings.

  

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