Compliance

Experts Share Testimony at Ways and Means Hearing

By Tara Cantore editors@plansponsor.com | April 17, 2012
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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 accounts.

“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.

“Retirement 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.

David 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.