Portability of pension assets is critically important. The small business area is where many employees enter the job market, where many new jobs are created, and where substantial turnover occurs. Ease of movement for SAFE plan assets is a big plus. As mentioned earlier, the Council is encouraged that there exists strong bipartisan support for a tax favored simplified defined benefit program for small businesses. These rules are counterproductive to new plan formation and will discourage participation in plans.
SAFE imposes no such requirement.
SAFE's benefit formulas are more realistic. In closing, the Council believes that SAFE is an important step towards expanding retirement plans for small businesses, we believe that small plan formation will increase if SAFE is adopted. In addition to the SAFE proposal, we believe the following list of pension proposals will greatly simplify the pension rules for plan sponsors, particularly small businesses, and thus will lead to expanded pension coverage for employees. A. Relax top-heavy rules 1. Repeal family attribution applicable to top-heavy rules 2.