[9914]
May 11, 1998
TO: BOARD OF GOVERNORS No. 25-98
FEDERAL LEGISLATION MEMBERS No. 6-98
PRIMARY CONTACTS - MEMBER COMPLEX No. 33-98
PUBLIC INFORMATION COMMITTEE No. 15-98
RE: MAJOR PENSION LEGISLATION INTRODUCED
______________________________________________________________________________
On May 4, 1998, Representatives Rob Portman (R-OH) and Benjamin Cardin (D-MD)
introduced H.R. 3788, the “Retirement Security for the 21st Century Act,” a wide-reaching and
significant bill. The Institute will testify in support of this legislation, including provisions to:
` increase portability among defined contribution pension plans;
` increase the dollar limitations on contributions to 401(k), 403(b), 457 and SIMPLE plans;
` repeal the 25%-of-compensation limitation on contributions to defined contribution plans;
` allow persons age 50 and older to increase by $5,000 their contributions to salary reduction
plans;
` modify top-heavy rules to make establishment of pension plans more attractive to small
businesses;
` raise from 70½ to 75 the age at which minimum distributions must be made;
` exempt the first $300,000 of defined contribution plan assets and IRA assets from the minimum
distribution requirements; and
` reduce from 50 percent to 10 percent the excise tax on failure to make minimum distributions.
Attached is a summary that describes these and other provisions of the bill.
We will keep you informed of further developments.
Matthew P. Fink
President
Attachment