Congress Must Put Ideology Aside in Pension Debate, Hatch Warns

As the debate on Capitol Hill over retirement policy moves forward, it must be bipartisan and based on facts, not ideology, Sen. Orrin Hatch (R-Utah) told the delegates to the second annual NAPA DC Fly-In Forum Sept. 30.

Hatch, Ranking Member of the Senate Finance Committee, traced the spirit of bipartisanship that has long been part of the major pieces of retirement legislation passed by Congress, noting that most bear the names of a sponsor from each side of the aisle. That tradition must continue for any meaningful changes and improvements to the system to be made, he asserted.

Hatch cautioned that members of Congress should not attempt to turn pension policy into just another partisan battleground, expressing his wish that as retirement policy moves further into the public policy spotlight, the focus continues to be on serious policy proposals, not political slogans. 

Hatch also provided a rundown of the pension reform legislation he introduced, The Secure Annuities for Employees (SAFE) Retirement Act. The SAFE act would create a “starter” 401(k) plan for small businesses, increase the auto-escalation 401(k) limit, allow in-plan annuities, foster open multiple employer plans (MEPs) and help beleagured state and local governments dig out from under their pension obligations and funding problems, among other things. Hatch emphasized that those government entities are right to ask for help from Washington — but not to expect a bailout.

If Republicans reclaim control of the Senate in next month’s midterm elections, Hatch is in line to become the chairman of the Finance Committee, one of two committees with jurisdiction over any tax reform legislation that moves through Congress. 

Speakers who addressed the Fly-In Forum delegates included SEC Commissioner Michael Piwowar and Mark Iwry, the Treasury Department’s senior advisor on health and retirement issues and co-author of President Obama’s “MyRA” auto enrollment IRA plan. Look for more of our coverage of the 2014 Fly-In Forum throughout the rest of this week.