Grassley: Pension Bill Contains Generous Saving Incentives

GRASSLEY: PENSION BILL CONTAINS GENEROUS SAVINGS INCENTIVES

WASHINGTON - The pension bill that Sen. Chuck Grassley helped to shepherd through Congress contains some of the most generous tax incentives ever passed to help workers save for retirement. Grassley, as chairman of the tax-writing Finance Committee, has worked to enact many of the provisions since becoming chairman in 2001.

"This legislation makes a generous investment in workers' retirement," Grassley said. "Congress is saying it's a wise use of tax breaks to help people create a nest egg. I hope these incentives will help to turn around our very low national savings rate. Unfortunately, we have nowhere to go but up. This should help steer us in the right direction."

The Pension Protection Act of 2006, given final Senate approval by a 93-5 vote last night, now goes to the President for his expected signature. The bill contains the most sweeping reforms of pension funding rules since 1974, helping to guarantee that companies uphold their pension promises to workers. The measure permanently extends pension and savings tax incentives that were part of the major 2001 tax bill. The bill includes:

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