Representatives of financial service companies pressure Congress for pension reforms
Representatives of financial service companies Monday urged fastaction on legislation to shore up
traditional pensions, saying Congresshad to act “sooner rather than later” if something is to pass thisyear.
The Financial Services Roundtable, which includes major banks,insurance and investment companies that manage pension plan assets,wrote to House Speaker Dennis Hastert, an Illinois Republican, urgingthe legislation be dealt with as soon as House members return toWashington from recess next week.
“The time to act is sooner, rather than later, to ensure there isenough time to conference with the Senate before adjourning nextmonth,” Steve Bartlett, the president of the group, wrote to Hastert.
“Pension reforms, like investment advice and automatic enrollment,will strengthen the ability of Americans to save and invest forretirement,” Bartlett said.
The Senate earlier this month approved legislation aimed at reducingunderfunding in “defined benefit” pension plans, which have a fixedpayout at retirement. But the legislation has yet to be brought to thefloor in the House, and both chambers have a large backlog of work tofinish this year.
The House version also encourages employers that offer a differentkind of retirement vehicle, known as the 401(k) plan, to automaticallyenroll workers. And it makes it easier for employers to offerinvestment advice with 401(k) plans.