Legislative Overview
Frederick H. Nesbitt, NCPERS Legislative Counsel

The inability of the House and Senate to agree of many significant bills last year will ensure that many of the same issues will get attention during the 108^th Congress, according to NCPERS Legislative Counsel Fred Nesbitt.

In his annual recap of legislative activity, Nesbitt noted that because of the Enron and Worldcom scandals, the media last year was unusually focused on pension security. Similarly, Congress expressed its concern by scheduling numerous hearings, yet failed to approve significant pension reform bills.

Often because of the nearly equal number of Republicans and Democrats elected to the House and Senate, Nesbitt said Congress failed to address many other issues last year, including the federal budget. Only two appropriations bills were approved; Congress never acted on the other 11, and instead has passed one continuing resolution after another since the current fiscal year began last October 1.

Notable among the bills Congress approved in the 107^th Congress was the Economic Growth and Tax Relief Reconciliation Act of 12001 (EGTRAA, PL 107-16). The new federal law requires that all of the states pass conforming legislation. All have, except for Arkansas; its legislature has not been in session since Congress approved EGTRAA. Nesbitt noted the new law expires in 2011, although he expects Congress will extend the law’s provisions before that deadline.

Nesbitt reviewed five issues he expects the new Congress to consider during the first session that are of interest to the pension fund managers:

• pension security,
• making EGTRAA provisions that will expire in 2011 permanent,
• Social Security reform,
• Medicare and Medicaid reform, and
• bankruptcy protection.

Nesbitt unveiled NCPERS’ 2003 Legislative Agenda, which includes these three issues:

1. Oppose mandatory Social Security coverage.
2. Support Social Security reform to protect benefits and oppose private retirement accounts.
3. Support legislation to improve health care coverage for public employees.

For more information on the 2003 agenda issues, read the entire Legislative Briefing Book. The document includes a 10-point list of legislative proposals developed by NCPERS’ Health Care Task Force and adopted by the Board of Directors.