Bipartisan Group of Senators Work to Eliminate the Pension Gap for Women
To address the unique challenges that women face in planning for retirement, a group of bipartisan senators introduced the "Women's Retirement Security Act of 2007" today. Cosponsored by Senators Gordon H. Smith (R-Ore.), Kent Conrad (D-N.D.), John Kerry (D-Mass.), Jeff Bingaman (D-N.M.) and Olympia J. Snowe (R-ME) the legislation works to narrow the retirement income gap between men and women by creating new opportunities for retirement saving.
"This bill is about ensuring women who have worked hard their whole lives have the retirement benefits they deserve," Senator Kerry said. "It's about supporting small businesses owners as they offer and maintain a solid pension plan for their employees. A secure retirement is a basic cornerstone of the American Dream and a right that all working Americans deserve - no matter their gender or background. By making the saver's credit refundable, we will provide assistance to those struggling to save. I thank Senator Smith and the other cosponsors for their leadership on this bill, which will help the approximately 71 million workers without an employer-sponsored plan, have a better life after retirement."
"Women generally live longer than men, making it all the more important that women achieve long-term financial security," said Senator Smith. "Unfortunately, due to unique circumstances women face in their lifetime, the current pension structure makes it more difficult for women to prepare for retirement. It is important that we remove barriers in the current system and provide more opportunities for women to save for their future needs." "Too often, women reach retirement age without adequate savings. Additionally, women typically live longer than men and need even more savings to retire," Senator Conrad said. "This legislation provides practical incentives to help women take control of their financial futures and helps them overcome the hurdles of the current system that make it harder to save for retirement." "This legislation will improve pension and retirement security for women and all Americans. It helps workers save for their golden years in many ways, including making it easier for small employers to set up retirement plans," Senator Bingaman said.
"It is imperative that all hardworking Americans have access to the same levels of financial security," said Senator Snowe. "In Maine, 78 percent of elderly women over 60 years old live alone, making it clear that Congress must work to ensure that these women and others like them throughout the country have the savings they need for retirement. I am proud to be a part of this bipartisan effort to ensure that women have greater opportunities to save for retirement and create a safety net for a better life in the future."
The legislation will require employers to allow long-term, part-time employees to make contributions to a 401(k) plan. In addition, employers that currently do not sponsor a retirement plan would be required to allow employees to contribute a portion of their salary to an IRA. The bill also will encourage small businesses to enter and remain in the employer retirement plan system through tax incentives and simplification of some of the more onerous retirement plan rules.