At present, half of our nation’s workforce -- 75 million Americans -- lack access to a 401(k)-type plan or any kind of pension.  Further, contribution limits on pensions and IRAs have been frozen at their current levels since 1981.  As a result, individuals could invest more in a 401(k) plan in the early 1980s than they can today, and of all retirement savings plans, only the IRA limit has never been indexed for inflation.  

H.R. 10 would allow individuals to set aside more money by increasing the current $2,000 IRA contribution limit for both traditional and Roth IRAs to $5,000 over a three-year period.  Additionally, it would reduce regulatory burdens on plan sponsors, enabling small businesses to offer retirement plans.  Finally, this legislation would allow for greater portability between plans, strengthen legal protections for pension participants, offer quicker vesting and include “catch-up” provisions to make up for earlier missed contributions by reaching out to women reentering the workplace and workers over fifty.  

As traditional, employer-funded benefit pension plans continue to shift toward contribution plans funded by workers, retirees need to have the tools to better manage their assets during the savings phase and ensure that they do not outlive their income during retirement.  Current statistics indicate that one-fifth of today's 35-year-olds who reach retirement can expect to live into their 90s -- evidence that many Americans will outlive their retirement savings.  Therefore, it is absolutely critical that Congress ensure that Americans have the resources necessary to achieve a financially secure retirement.  

I would urge my colleagues to support this landmark legislation that would expand access to private pensions and increase flexibility for families to save for retirement.