U.S. Chamber Welcomes Pension Reform

WASHINGTON, D.C. – The U.S. Chamber of Commerce today welcomed Congressional action passing pension reform by an overwhelming margin of victory, 401 – 25. The Comprehensive Retirement Security and Pension Reform Act (H.R. 1102) will simplify businesses' pension process by easing paperwork requirements and streamlining regulations, making employer-sponsored pension programs affordable for more business owners.

"Reform is critical, if we are to encourage more businesses to offer a pension benefit now, while many workers still have time to build for their retirement," said Bruce Josten, Chamber executive vice president. "Without reform, more workers will be forced to rely on Social Security, which is already facing financial difficulty."

The pension reform legislation passed today by the House would streamline pension plan regulations, simplify reporting requirements and lower the employer costs of pension programs. It will also raise IRA annual contribution limits from $2,000 to $5,000 over five years, raise annual 401k contribution limits, and would reduce the current five-year vesting period for those funds as well.

"Pension reform will help all Americans increase their retirement savings and will allow more workers to benefit from employer-sponsored programs," said Josten. "Increased saving provides more funds to businesses to invest, grow and create jobs. Saving is the basis for productivity growth that leads to a higher standard of living."

The need for pension regulatory reform was underscored by the Administration's Advisory Council, Josten noted, when it recommended the outright repeal of a number of burdensome and duplicative rules covering pension systems. The Chamber called on the Senate to pass similar legislation and for the President to approve this much-needed reform.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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