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Congress Urged to Act on Pensions
Reuters
November 29, 2005
Representatives of financial service companies Monday urged fast action on legislation to shore up traditional pensions, saying Congress had to act "sooner rather than later" if something is to pass this year.
The Financial Services Roundtable, which includes major banks, insurance and investment companies that manage pension plan assets, wrote to House Speaker Dennis Hastert, an Illinois Republican, urging the legislation be dealt with as soon as House members return to Washington from recess next week.
"The time to act is sooner, rather than later, to ensure there is enough time to conference with the Senate before adjourning next month," Steve Bartlett, the president of the group, wrote to
Hastert. "Pension reforms, like investment advice and automatic enrollment, will strengthen the ability of Americans to save and invest for retirement," Bartlett said.
The Senate earlier this month approved legislation aimed at reducing underfunding in "defined benefit" pension plans, which have a fixed payout at retirement. But the legislation has yet to be brought to the floor in the House, and both chambers have a large backlog of work to finish this year.
The House version also encourages employers that offer a different kind of retirement vehicle, known as the 401(k) plan, to automatically enroll workers. And it makes it easier for employers to offer investment advice with 401(k) plans.
One of the House bill's sponsors, Ohio Republican Rep. John Boehner, has said he hopes the House will take up pension legislation in December.
But some House aides as well as business lobbyists worry the bill will get pushed back on a "to-do" list that includes a tax bill and renewal of the Patriot Act.
The House only plans to be in session for about two weeks in December, starting Dec. 6. Ultimately the House and Senate must reconcile their differences and pass the same version for legislation to become law.
The Bush administration is unhappy with both chambers' versions of the pension bill, saying they don't improve the near-term financial situation of the Pension Benefit Guaranty Corp. that insures pensions.
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