The resolution states, “That it is the sense of Congress that (1) tax incentives for retirement savings play an important role in encouraging employers to sponsor and maintain retirement plans and encouraging participants to contribute to such plans; existing tax incentives have increased the number of Americans who are covered by a retirement plan; and a reformed and simplified tax code should include properly structured tax incentives to maintain and contribute to such plans and to strengthen the retirement security for all Americans.”
The resolution was introduced by Senators Richard Blumenthal (D-Connecticut) and Johnny Isakson (R-Georgia), who were joined by nine other senators in co-sponsoring the resolution. It has been referred to the Senate Committee on Finance.
The Coalition to Protect Retirement, which represents groups that sponsor and manage retirement plans, praised the resolution as a strong reaffirmation of the importance of the private-sector retirement plan system and the role it plays in assuring the financial security of Americans when their working days are over.
“Actions taken to reduce the national debt and reform the tax code should not be done at the expense of workers and retirees. Tens of millions of Baby Boomers will reach retirement age in the coming years. Government policy should focus on helping them achieve financial security and independence in retirement. The incentives in the current tax code are an investment in the future, helping assure that retirees will not suffer from financial need and look to the government for help,” the Coalition said.
The Coalition consists of: the American Benefits Council, American Council of Life Insurers, American Society of Pension Professionals and Actuaries, ERISA Industry Committee, ESOP Association, Insured Retirement Institute, Plan Sponsor Council of America, Securities Industry and Financial Markets Association, and the Society for Human Resource Management.