Congressional Caucuses Take on Retirement Security
By Arthur D. Postal
InsuranceNewsNet
WASHINGTON – Bipartisan retirement security caucuses have been formed in the House and Senate, an indication of growing concern in Congress about the state of retirement preparedness.
The House Retirement Security Caucus will be headed by Rep. Mike Kelly, R-Pa., and Rep. Richard Neal, D-Mass., who will serve as the co-chairs of the caucus. The Senate Retirement Security Caucus will be chaired by Sen. Rob Portman, R-Ohio, and Sen. Ben Cardin, D-Md.
As members of the House in 2001, Portman and Cardin were the named sponsors of legislation that increased retirement plan contribution limits, addressed portability issues, and facilitated the expansion of small business retirement plans.
That legislation, the Comprehensive Retirement Security and Pension Reform Act, is commonly referred to as Portman-Cardin. The bill was enacted as part of the Economic Growth and Tax Relief Reconciliation Act of 2001, the signature Bush administration tax cut legislation.
The formation of this caucus “is a leap forward” in focusing the nation’s attention to the significant challenges Americans face in preparing for retirement, said Cathy Weatherford, president and CEO of the Insured Retirement Institute.
It comes as a report this week in The New York Times cites the Federal Reserve’s Survey of Consumer Finances as saying that, on average, a typical working family near retirement — headed by somebody 55 to 64 years old — has only about $104,000 in retirement savings.
The Times report also cited a Center for Retirement Research at Boston College study estimate that more than half of all American households will not have enough retirement income to maintain the living standards they were accustomed to, even if the members of the household work until 65, two years longer than the average retirement age today.
In her comments lauding creation of the new group, Weatherford echoed that sentiment: “Too many Americans are under-saved, and countless others are unprepared to manage the challenge of making their savings last throughout a retirement that could last 20 years, 30 years, or even longer.”
InsuranceNewsNet Washington Bureau Chief Arthur D. Postal has covered regulatory and legislative issues for more than 30 years. He can be reached at [email protected].
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