Report Title:

Support Expansion of the Individual Retirement Accounts

WHEREAS, half the workforce – 70 million Americans – lack access to a 401(k) – type plan or any kind of pension; and

WHEREAS, among small businesses – less than 20% of small businesses with 25 or fewer employees offer any kind of pension coverage today; and

WHEREAS, there has been virtually no growth in pension coverage in the past 20 years; and

WHEREAS, contribution limits on pensions and individual retirement accounts (IRA) are stuck at 1980's levels; and

WHEREAS, the Comprehensive Retirement Security and Pension Reform Act allows Americans to set more aside in an IRA or 401 (k) – type plan, modernizes pension laws and provides regulatory relief to encourage more small businesses to offer retirement plans; and

WHEREAS, having passed in the U.S. House of Representatives by a vote of 401 – 25, IRA expansion has wide bipartisan support; and

WHEREAS, the current $2,000 IRA contribution limit (established in 1981) for both traditional and Roth IRAs should be increased to $5,000; and

WHEREAS, the limit of salary reduction contributions to 401 (k) – type plans should be increased from $10,500 today to $15,000 by 2005; and

WHEREAS, workers over 50 should be able to contribute up to $5,000 in "catch-up" contributions for 401 (k) – type plans; and

WHEREAS, thousands of union workers participating in multi employer pension plans are short-changed on their retirement benefits and the Comprehensive Retirement Security and Pension Reform Act bill fixes this problem to help these workers get the full pension benefits they have earned; and

WHEREAS, pension laws should be modernized and streamlined to encourage small businesses to offer pension plans; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2001, that members of Hawaii's delegation to the Congress of the United States are respectfully urged to support and work to pass the Comprehensive Retirement Security and Pension Reform Act; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the United States and members of Hawaii's congressional delegation.