Pension Protection Act of 2006

PENSION PROTECTION ACT OF 2006 -- (House of Representatives - July 28, 2006)

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Mr. KIND. Mr. Speaker, I rise in support of the legislation before us tonight. The Pension Benefit Guaranty Corporation, PBGC, is dangerously underfunded, current pension law is antiquated, and this Congress must do all it can to shore up America's private pension system.

The bill addresses the concerns of both workers and employers and makes necessary changes to shore up the Federal pension system. Among the welcomed reforms are greater transparency and accountability in the PBGC, the special consideration given to airlines, and the overall tightening of rules so that companies will meet their financial obligations to their employees and retirees.

As a cochair of the New Democrat Coalition, I believe it is important to reform pensions so that promises to workers are kept, taxpayers are not left footing the bill, and companies can continue to be good actors and offer pension plans. In addition, any discussion of pension reform must include an increased emphasis on personal responsibility.

Americans are not saving enough for retirement. In fact, the national savings rate is at its lowest level since the 1930s, declining from 9.4 percent in 1970 to just 1 percent in 2004. In response to these weak savings rates, we need to create new, simpler incentives for middle-class Americans to save. Fewer than 40 percent of U.S. workers have calculated how much they will need to retire, 30 percent have not saved anything for retirement, and only 20 percent feel very confident about having enough money to live comfortably in retirement. Therefore, I am pleased by provisions in this bill making the saver's credit permanent and encouraging automatic enrollment in 401Ks.

This legislation makes the necessary reforms to strengthen the Federal pension system to the benefit of workers, retirees and taxpayers alike.

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