CONTENTS Page Statements of: Anderson, William B., board member, National Federation of Independ- Erlenborn, John N., representing the U.S. Chamber of Commerce. King, James A., director of industrial relations, Borden Co., representing Swain, Frank S., chief counsel for advocacy, U.S. Small Business Admin- 116 71 50 90 102 141 48 American Bankers Association, statement of... 340 Anderson, William B., president, Matrix, Inc., on behalf of the National 119 ERISA Industry Committee, the, Washington, DC, written statement of .... Erlenborn, John N., representing the U.S. Chamber of Commerce, pre- Guildroy, Jack, member, National Legislative Council, American Associa- Hoffman, William S., Ph.D., director, Social Security Department, Inter- 53 King, James A., assistant general counsel, Borden, Inc., on behalf of the 94 382 105 McGlotten, Robert, director, Department of Legislation, American Feder- 344 Naughton, John M., executive vice president, Massachusetts Mutual Life 144 Roukema, Hon. Marge, a Representative in Congress from the State of 3 Bartlett, Dwight K., III, president, Mutual of America, statement of. "Deferred Tax Liabilities and Individual Retirement Accounts, or IRA's Dennis, William J., Jr., NFIB Research and Education Foundation, "Small Business Employee Benefits," booklet entitled.. Diannitto, Sam, Jr., president, National Conference on Public Employee Ferguson, Karen, director, Pension Rights Center, Washington, DC, letter to Chairman Clay, dated February 25, 1986 enclosing "The Case of the Disappearing Pension," booklet entitled.. Georgine, Robert A., chairman, National Coordinating Committee for 408 425 434 Holan, Walter, president, Profit Sharing Council of America, statement of National Rural Electric Cooperative Association, Washington, DC, state- 501 Southland, Corp., the, statement of.. 554 Teachers Insurance and Annuity Association-College Retirement Equities 564 THE RETIREMENT INCOME POLICY ACT OF 1985, AND THE RETIREMENT UNIVERSAL SECURITY ARRANGEMENTS ACT OF 1985 TUESDAY, FEBRUARY 25, 1986 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON LABOR-MANAGEMENT RELATIONS, Washington, DC. The subcommittee met, pursuant to call, at 10 a.m., in room 2261, Rayburn House Office Building, Hon. William Clay (chairman of the full committee) presiding. Members present: Representatives Clay, Kildee, Owens, Roukema, Chandler, Fawell, and Jeffords. Mr. CLAY. The subcommittee will come to order. Today, we begin consideration of H.R. 3594, the Retirement Income Policy Act of 1985, which is a bill designed to improve the retirement income security of American men and women. My colleague, Congressman Rod Chandler, and I introduced this bill last October. Senators John Heinz and John Chafee have introduced identical legislation in the Senate. In January, the Senate Finance Committee's Subcommittee on Savings, Pensions, and Investment Policy, chaired by Senator Heinz, held a hearing on this legislation in preparation for the Finance Committee's consideration of tax reform. Our hearing today will expand upon and supplement that hearing. In addition, we will consider H.R. 3098, the Retirement Universal Security Arrangements Act of 1985. The process that resulted in the introduction of H.R. 3594 has been a long and thoughtful one. For over 2 years, we have listened to every voice within the pension community call for a national retirement income policy. Last year, this subcommittee held 2 days of hearings to evaluate our current retirement policies and to consider how best to provide for the retirement security of our citizens. Over and over, we have expressed concern about the existing patchwork of sometimes conflicting and counterproductive legislative enactments and interpretations. This time, we decided to move forward constructively ourselves to provide a framework for discussion, instead of waiting to react to other proposals. We have reached out to our colleagues on both sides of the aisle, on the Labor and Tax Committees, and in both Houses to work with us to draft a consensus statement of national retirement goals as well as some of the legislative changes needed to move us toward these goals. Although H.R. 3594 is a blueprint for change, it is clearly a work in progress. Legislative consideration of pension improvements cannot begin too soon. Last year's tax reform effort in the House and its impending consideration in the Senate will have a dramatic impact upon pension plans. But good tax policy is not necessarily good retirement policy. Legislation affecting the retirement income of working men and women must be considered for more than just its tax implications. No legislation can solve every problem or address every need. When you are dealing with issues as complex as these, the task is especially difficult. So, we urge you to work with us to improve this piece of legislation. Today, we will hear from a cross section of witnesses. Because of time constraints, we were unable to accommodate many others who wanted to testify. The record will remain open until March 14, however, so that the subcommittee may hear from as many interested parties as possible. Mrs. Roukema, do you have an opening statement? Mrs. ROUKEMA. Thank you, Mr. Chairman. In the interest of time, I would ask that my opening statement be included in the record. I think the chairman has quite accurately portrayed the context in which these hearings are being held. They are followup to hearings last spring. But I would also like to point out, in addition to the Retirement-H.R. 3594, the Retirement Income Policy Act, there is under consideration today, and I would hope that the witnesses would address, the Retirement USA bill, H.R. 3098, in which I have an extraordinary interest. I think we are not far apart on our goals, Mr. Chairman. I think we are in complete agreement that good tax policy is not good retirement policy, and that between these two pieces of legislation and the wisdom of the witnesses today I think we should find ourselves in a good position to further address and refine the issues. Thank you very much. [Opening statement of Hon. Marge Roukema follows:] OPENING STATEMENT OF HON. MARGE ROUKEMA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY MR. CHAIRMAN: I AM PLEASED TO JOIN YOU TODAY IN THIS HEARING ON AN ISSUE THAT WE BOTH AGREE SHOULD BE A TOP CONGRESSIONAL PRIORITY - THE FORMULATION OF A WELL-ARTICULATED NATIONAL RETIREMENT INCOME POLICY. THE SUBJECT OF THESE HEARINGS, THE RETIREMENT INCOME POLICY ACT (H.R. 3594) AND THE RETIREMENT-USA LEGISLATION (H.R. 3098), BOTH INCLUDE A DECLARATION OF POLICY WHICH LISTS A NUMBER OF GOALS WITH WHICH I KNOW, MR. CHAIRMAN, BOTH YOU AND I ARE IN AGREEMENT. IN FACT THESE RETIREMENT POLICY GOALS WERE FASHIONED FROM THE CONSENSUS VIEWS OF THE EMPLOYEE AND EMPLOYER REPRESENTATIVES WHO TESTIFIED BEFORE US LAST SPRING THAT WE NEEDED TO ESTABLISH SUCH GOALS AND IMPLEMENT THEM WITHIN A NATIONAL POLICY FRAMEWORK. ALL TOO OFTEN IN THE PAST, RETIREMENT INCOME POLICY HAS BEEN DETERMINED FROM A SHORT-TERM POINT OF VIEW, WITH REVENUE-RAISING CONCERNS AS THE PRIMARY DRIVING FORCE. THE LEGISLATION BEFORE US |