Congress came one step closer to passing comprehensive pension reform last week when the U.S. House and Senate appointed conferees and met for the first time to negotiate a final draft of the Pension Protection Act. Over the next few weeks both sides will begin to work out the differences between their respective bills and find a compromise package to send to the President. 

While there are some important issues that need to be resolved during the conference, Congress is committed to passing legislation that strengthens worker pension rules.  I believe this is one of the most important bills we will vote on this year.

This legislation is critical because our current system is outdated and needs to be fixed.  In fact, many of the rules that govern our pension system have not been updated in decades. Those in traditional defined benefit pension plans are especially suffering from the effects of this broken system.  We must also move forward on this legislation to provide guidelines to major industries that are facing serious financial problems.

The House-passed bill, the Pension Protection Act, addresses many of the concerns. The bill provides funding reforms for single and multiemployer pension plans and provides legal certainty to hybrid plans. Under new disclosure provisions, employees will also be able to find out the exact status of their plans. The bill also takes the first steps to prevent employers from using bankruptcy to walk away from their pension obligations.

All Americans will benefit from the retirement security provisions included in the Pension Protection Act. Perhaps most notably, the bill makes permanent the retirement savings provisions signed into law in 2001. These provisions include the saver’s credit, expanded contribution limits for IRAs, increased saving opportunities for our men and women in combat and other public safety employees.

Comprehensive pension reform is a true bipartisan goal. Initial legislation passed handily in the House (294 – 132) and in the Senate (97-2), demonstrating the serious importance Congress is placing on strengthening pension laws and ensuring that employers properly and adequately fund their pension plans. 

I hope we can continue to work together in the coming weeks to move the conference report forward.  Hard-working Americans deserve nothing less.

     RON LEWIS

                                                                 Member of Congress