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House Passes Pension Reform Bill

Wed, 07/26/2000 - 12:00am — Karen Stevenson
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The House passed HR 1102, The Comprehensive Retirement Security and Pension Reform Act of 2000, and it has passed to the Senate. This bill would gradually increase to $15,000 from the current $10,500 limit the maximum annual salary deferral an employee could make to a 401(k) plan. Other provisions would allow employees age 50 and older to make an additional $5,000 in annual "catch-up" contributions to their 401(k) plans and allow employees moving back and forth between the for-profit and non-profit sectors to transfer funds from 401(k) to 403(b) plans and vice versa. In addition, the measure would shorten, to three years from five years, the maximum amount of time in which employers' matching contributions to savings plans must be vested.

The House passed HR 1102, The Comprehensive Retirement Security and Pension Reform Act of 2000, and it has passed to the Senate. This bill would gradually increase to $15,000 from the current $10,500 limit the maximum annual salary deferral an employee could make to a 401(k) plan. Other provisions would allow employees age 50 and older to make an additional $5,000 in annual "catch-up" contributions to their 401(k) plans and allow employees moving back and forth between the for-profit and non-profit sectors to transfer funds from 401(k) to 403(b) plans and vice versa. In addition, the measure would shorten, to three years from five years, the maximum amount of time in which employers' matching contributions to savings plans must be vested.