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Portman-Cardin Pension Legislation
PACE PowerPoint Presentation

Portman-Cardin Pension Legislation
 
Please take a moment to review the Portman-Cardin pension legislation that
follows. This legislation will be beneficial to our members.
 
Please contact your Congress member using one of the methods listed at the
end of this memo.
 
Thanks for your help,
 
Don Hill
PAOC Chair 2001
1676 Donelwal Drive
Lexington KY 40511-9021
 
H 859 259 0740
W 859 257 8487
C 859 489 IEEE
F 859 323 3287
d.w.hill@ieee.org
 
SPECIAL ALERT: IEEE-USA Is Asking Members to Write Their U.S.
Representatives in Support of the Portman-Cardin Retirement Security and
Pension Reform Act (H.R. 10)
 
Representatives Rob Portman (R-OH) and Ben Cardin (D-MD) reintroduced their
Comprehensive Retirement Security and Pension Reform Act (H.R. 10) in the
US House of Representatives on March 14, 2001. This bill, which enjoyed
broad bipartisan support in the last Congress, passed the House, not once
but twice (401 to 25 on July 19th and 401 to 20 on September 19th). The
pension reform provisions were also included in an omnibus House-Senate tax
relief package that was debated (but not enacted) in the closing days of
the 106th Congress.
 
The new Portman-Cardin bill would:
 
> Increase the current law $2,000 contribution limit (established in 1981)
for deductible and non-deductible IRAs to $5,000 in $1,000 annual
increments,
 
> Increase 401(k), 403(b), Section 457 and salary reduction SEP
contribution limits from $10,500 to $15,000 and SIMPLE contribution limits
from $6,000 to $10,000,
 
> Allow older workers to make "catch-up" contributions of up to $5,000 a
year to 401(k) type plans and up to $1,500 to IRAs,
 
> Reduce vesting requirements for employer matching contributions to
defined contribution plans from 5 to 3 years and improve pension
portability by facilitating transfers of earned benefits among and between
DC plans and IRAs,
 
> Promote expanded pension coverage by simplifying complex minimum
distribution, non- discrimination and top-heavy rules, and
 
> Mandate expanded disclosures about plan amendments that will reduce
benefit accrual rates in conversions from defined benefit plans to cash
balance plans.
 
The bill does not currently address issues related to wear-away of
retirement benefits during cash balance pension plan conversions, although
it is expected that related provisions will be added in the Senate.
 
The new Portman-Cardin proposal will probably be moved as a free standing
bill and added later to President George W. Bush's tax relief package,
parts of which have already been passed by the House. A companion bill is
also expected to be introduced shortly in the Senate by Sens. Chuck
Grassley (R-IA) and Max Baucus (D-MT).
 
You can read the full Action Alert on-line at
https://congress.nw.dc.us/cgi-bin/alertpr.pl?dir=ieee&alert=124 and/or send
a letter to your Representative through IEEE-USA's Legislative Action
Center at https://congress.nw.dc.us/ieeeusa .
 
PACE PowerPoint Presentation
 
This web address contains an excellent Powerpoint program for your local
PACE meeting.
 
https://www.ieeeusa.org/careers/ieeepep1.ppt
 
Please visit the site and schedule your meeting.

 

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Updated 04/01/2001