posted on January 31, 2012 08:42
Federal Legislative Action Alert
YOUR ASSISTANCE IS NEEDED! Please email your representative and ask him/her to co-sponsor the Neal/Gerlach House Concurrent Resolution! Representatives Richard Neal (D-MA) and Jim Gerlach (R-PA) will introduce a bi-partisan House Concurrent Resolution the week of February 4, 2012, that highlights the important role employer-sponsored retirement plans play in helping Americans save and plan for retirement. To date, SHRM has assisted in garnering 56 co-sponsors! Click HERE to see if your member has co-sponsored the resolution.
Please Take This Action:
If your representative has not yet co-sponsored, please write to him/her using SHRM’s HRVoice program, follow these steps:
1. Log onto the alert on the SHRM Advocacy Action Center by visiting HERE
2. Please personalize your message with your own story
3. Be sure to include your complete home mailing address.
This summer, President Obama signed into law legislation that creates a bipartisan, bicameral Congressional Joint Select Committee on deficit reduction. The committee, known as the “Super Committee,” is charged with reducing the federal debt by at least $1.5 trillion during the next 10 years by looking at current spending and tax code policies. Because of their tax-deferred status, employer-provided benefits such as retirement and health care plans may come under scrutiny by the Super Committee.
Employer-provided retirement plans are a key component of our nation’s retirement system and produce significant retirement benefits for America’s working families. Together with Social Security and individual savings, employer-provided retirement plans produce significant retirement benefits for America’s working families. There are approximately 670,000 private-sector defined contribution plans covering 67 million participants and over 48,000 private-sector defined benefit plans covering 19 million participants.
Employer-sponsored health care and retirement benefits, because of their tax-deferred status, create the largest annual loss in revenue to the federal treasury. As a result, it is anticipated that public policy efforts to reform the tax code and bring down the federal deficit will involve an examination of employer-sponsored benefits, including retirement plans, health care benefits and educational assistance programs. Given the large loss of revenue to the U.S. Treasury, employer-sponsored pension plans are an attractive revenue-raising target for Congress.
SHRM believes that a comprehensive and flexible benefits package is an essential tool in recruiting and retaining talented employees. Every American employee should be provided the opportunity to save for retirement. The government should facilitate and encourage voluntary employer-sponsored plans, as well as individual savings through consistent tax incentives and simplified regulations.
SHRM supports the House Concurrent Resolution to be introduced by Rep. Neal and Rep. Gerlach. The resolution declares the benefits and importance of employer-sponsored retirement plans.
The House Concurrent Resolution has not yet been introduced, and therefore, has yet to be assigned a number. However, the draft legislation has been sent to every member of the House of Representatives. Please ask your Representative to co-sponsor this measure prior to introduction! This measure states many important facts, most importantly:
- The current tax incentives for retirement savings provide important benefits to Americans to help plan for a financially secure retirement;
- There are approximately 670,000 private-sector defined contribution plans covering 67 million participants and over 48,000 private-sector defined benefit plans covering 19 million participants;
- $4.7 trillion is held in 401(k), 403(b), 457 and similar defined contribution plans, $2.3 trillion is held in private defined benefit plans, and another $4.9 trillion is held in Individual Retirement Accounts, largely consisting of funds rolled over from employer-based retirement plans;
- During 2000 through 2009, employers contributed almost $3.5 trillion to public and private retirement plans;
- Tax incentives are an important impetus for individuals to save and plan for retirement and for employers to offer plans in a voluntary system.
Should you have any questions regarding this resolution, please contact Kathleen Coulombe, SHRM’s Senior Associate, Government Relations at email@example.com.