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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-8921.
The Administration today testified before Congress on its
proposal to simplify pensions and expand coverage to millions of Americans,
especially those working for small businesses. The need for the
Administration's proposal is supported by recent data and new analysis of
national and regional pension coverage developed by the Department of Labor.
Recent current population survey data confirms that the majority of workers in
small firms are never given the opportunity to enroll in a company-sponsored
pension plan. According to Olena Berg, assistant secretary for the department's
Pension and Welfare Benefits Administration, "Our new analysis indicates that
up to 10 million workers in small businesses are not afforded the opportunity
to earn a pension. These workers could gain coverage if their employees sponsor
plans under the Administration's proposed, new simplified rules." Several
pension simplification proposals have recently been introduced in Congress.
Jere Glover, chief counsel for advocacy, Small Business Administration, and
Mark Iwry, the Treasury Department's benefits tax counsel, testified before the
House Small Business Committee hearing today. "Over 90 percent of businesses
have under 100 employees, yet in 1993 only 24 percent of these employees are
currently covered by a pension plan," said Glover. Iwry noted, "We now have an
opportunity to simplify pensions and to expand significantly the number of
workers in small businesses who are covered by retirement plans." The
Administration's pension simplification proposal, which was first introduced in
June, will encourage small and large employers to contribute to their
employees' retirement and to provide employees simpler, tax-advantaged ways to
save for retirement. The proposal would establish a new plan for employers with
100 or fewer employees, known as the National Employee Savings Trust, or
"NEST."
Archived News Release--Caution:
information may be out of date.
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