The Clay-Heinz bill surfaced in 1985 but did not get far because Congress was preoccupied with finding ways to increase revenues. It will surely return to the agenda. The support it receives will depend on the structure of such a policy. Designating pension plans as either retirement plans or capital accumulation plans, with the latter not available to sponsors unless a retirement plan is in place or planned. Placing some restrictions on minimum benefits or contributions required and on maximum benefits or contributions allowed.
Surveys show that people value their benefits highly.
If costs continue to escalate, sponsors will be forced to either bear the additional cost or cut back. The latter choice will place various benefits in direct competition for the sponsor's dollars. This, perhaps more than any development, points out the need for a holistic approach to employee benefits. Political Whims Experts agree that most benefit changes were previously driven by tax considerations. This is not the best of all possible worlds.