April 17, 2012 (PLANSPONSOR.com) - The House Committee on
Ways and Means heard testimony on tax-favored retirement accounts on Tuesday.
Several organizations spoke favorably about the retirement
“Employer-sponsored retirement savings plans are an
indispensable building block of our nation’s retirement system,” said Randolf
H. Hardock, managing partner at Davis & Harman LLP, who testified at the
hearing on behalf of the American Benefits Council.
plans, like those sponsored and administered by the Council’s members,
successfully assist tens of millions of families in accumulating retirement
savings, and will provide trillions of dollars in retirement income and a more
financially secure retirement,” Hardock said.
Jack VanDerhei, research director of the
Employee Benefit Research Institute (EBRI), spoke to the Committee about the
concept of measuring retirement security. He cited EBRI research that found
43.3% to 44.3% of Baby Boomers and Gen Xers in 2012 are projected to have
inadequate retirement income for basic retirement expenses plus uninsured
health care costs, a drop of 5% to 8% from the Institute’s 2003 analysis.
VanDerhei attributed the improvement to the increase in the number of employers
using automatic enrollment for their 401(k) plans.
C. John, senior research fellow for Retirement Security and Financial
Institutions at The Heritage Foundation and deputy director of the Retirement
Security Project (RSP), provided several suggestions to help Americans improve
their retirement savings.