| Outlook on Pension Legislation in 2005-2006
Rep. Ben Cardin (D-MD)
The House member who has led several legislative campaigns in recent years to benefit public employee pensions stressed the need for bipartisan coalition-building as the key to success on Capitol Hill.
Rep. Ben Cardin (D-MD) spoke immediately after attending a hearing held by the House Ways and Means Committee. Treasury Secretary John Snow was the witness, testifying in support of President Bush's plan for privatizing Social Security.
Cardin noted that some of the president's suggestions sound worthwhile, but upon closer inspection, fail to stand on their own. For example, Cardin noted that the president talks a lot about the Thrift Savings Plan (TSP). “It's a good plan,” Cardin said, “but what the president fails to mention is that members of Congress and federal employees who can contribute to the TSP also have a good defined benefit plan, supported in part by government contributions to the plan and Social Security.”
Getting Congress to talk about retirement issues is important, Cardin said, because of the savings rate in this country. “Compared to other industrialized nations,” he said, “we are dead last.” And the core retirement benefit for many Americans remains Social Security. “That's why we must strengthen the program—and you don't do that by taking money out of it.”
Cardin also discussed why it is important to preserve defined benefit plans, which he suggested do well because they are the best managed, “far better managed than those managed by individuals,” he said. “Look as Enron, United Airlines. The employees are not going to get the benefits they were promised, and the tax payer may have to pay for their investing mistakes.”
In closing, Cardin asked for NCPERS' continuing support of a Portman and Cardin bill, which would expand define contribution plan options. “We need to encourage people to participate in these types of plans,” which cover millions of Americans. Changes he supports include provisions to automatically enroll employees in these 401(k)-type plans with default investment options selected based on the employee's age.
Rep. Ben Cardin is serving his tenth term in the House of Representatives. As a member of the House Ways and Means Committee he is in a position to influence pension-related legislation introduced in Congress.
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