I
105TH CONGRESS
1ST SESSION
H. R. 1695
To establish a Commission on Retirement Savings.
IN THE HOUSE OF REPRESENTATIVES
MAY 21, 1997
Mr. POMEROY introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To establish a Commission on Retirement Savings.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Retirement Savings
Commission Act of 1997’’.
SEC. 2. ESTABLISHMENT.
There is established a commission to be known as the
Commission on Retirement Savings (in this Act referred
to as the ‘‘Commission’’).
SEC. 3. DUTIES.
(a) IN GENERAL.—The general purpose of the Com-
mission shall be to make a comprehensive study of private
pension and savings issues and to recommend policies to
expand access to and encourage participation in retire-
ment savings vehicles.
(b) ISSUES TO ADDRESS.—In preparation for mak-
ing the specific policy recommendations described in sub-
section (c), the Commission shall conduct a full and com-
plete study and review of—
(1) trends in coverage of American workers by
workplace retirement plans;
(2) trends in Americans’ personal rates of sav-
ing;
(3) the changing nature of workplace retire-
ment plans, particularly the shift from defined bene-
fit plans to defined contribution plans;
(4) the workforce and demographic trends af-
fecting the retirement savings of future retirees;
(5) the increased prevalence in the workforce
and the special retirement needs of—
(A) women;
(B) part-time workers; and
(C) temporary workers;
(6) the amounts of retirement income that fu-
ture retirees will need to replace various levels of
preretirement income, including amounts necessary
to pay for medical care and long-term care;
(7) the various sources of retirement income
available to individuals in the United States;
(8) past legislative changes adopted by Con-
gress which have acted as disincentives to the cre-
ation of workplace retirement plans and as disincen-
tives to personal retirement savings;
(9) the most efficient and effective manner,
considering the needs of retirement plan sponsors
for simplicity, reasonable cost, and appropriate in-
centives, of encouraging the adoption of workplace
retirement plans by employers, particularly small
businesses;
(10) the amount and sources of Federal and
private funds, including tax expenditures (as defined
in section 3 of the Congressional Budget Act of
1974 (2 U.S.C. 622)), needed to finance both exist-
ing Federal incentives and programs designed to en-
courage and protect retirement savings and any new
Federal incentives or programs that the Commission
recommends be established;
(11) the proper role of tax-deferred individual
retirement savings vehicles (such as individual re-
tirement accounts and annuities) in individual and
national retirement planning;
(12) the manner in which tax expenditures de-
signed to encourage pension and retirement savings
are scored for budget purposes, specifically how to
reflect accurately that tax revenues on pension and
retirement income are not lost to the Federal Gov-
ernment but instead are deferred until the time
these funds are withdrawn; and
(13) the role of retirement savings in the econ-
omy of the United States.
(c) RECOMMENDATIONS.—
(1) IN GENERAL.—The Commission shall for-
mulate recommendations based on the study and re-
view conducted under subsection (b). These rec-
ommendations shall include proposals that are de-
signed to—
(A) expand workplace retirement plan cov-
erage among American workers;
(B) encourage the accumulation of ade-
quate retirement income;
(C) stimulate personal savings for retire-
ment;
(D) encourage workers with access to
workplace retirement plans to participate in
these plans;
(E) ensure the security of benefits accumu-
lated by workers who have participated in work-
place retirement plans;
(F) help low-wage workers, who often have
the greatest difficulty saving for retirement, ac-
cumulate adequate retirement savings; and
(G) simplify the regulatory requirements
associated with administration of workplace re-
tirement plans.
(2) UNANIMITY REQUIRED.—The recommenda-
tions of the Commission shall be adopted by unani-
mous vote of all 16 members. Policy proposals not
supported by unanimous vote of all 16 members
shall not be considered recommendations of the
Commission and shall not be included in the report
described in section 7.
(3) NO RECOMMENDATIONS REGARDING SOCIAL
SECURITY.—While conducting the study and review
outlined in subsection (b), the Commission may con-
sider the role of Social Security retirement benefits
as a source of retirement income. However, the
Commission shall in no circumstances make rec-
ommendations regarding the Social Security pro-
gram or reforms thereto.
(4) EFFECT ON FEDERAL BUDGET DEFICIT.—
A recommendation of the Commission for a new
Federal incentive or program that would result in an
increase in the Federal budget deficit shall not ap-
pear in the report required under section 7 unless it
is accompanied by a recommendation for offsetting
the increase.
(d) DEFINITION.—For purposes of this section, the
term ‘‘workplace retirement plan’’ means any financial ve-
hicle referred to in section 219(g)(5) of the Internal Reve-
nue Code of 1986.
SEC. 4. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN GENERAL.—The Commission shall con-
sist of 16 members appointed not later than 90 days
after the date of the enactment of this Act.
(2) APPOINTMENTS.—The Commission shall in-
clude—
(A) 4 individuals appointed by the Presi-
dent, 1 of whom the President shall appoint
from the Congress to serve as co-chairperson of
the Commission;
(B) 4 individuals appointed by the Speaker
of the House of Representatives, 1 of whom the
Speaker shall appoint from the Congress to
serve as co-chairperson of the Commission;
(C) 4 individuals appointed by the majority
leader of the Senate;
(D) 2 individuals appointed by the minor-
ity leader of the House of Representatives; and
(E) 2 individuals appointed by the minor-
ity leader of the Senate.
(3) QUALIFICATIONS.—
(A) The individuals referred to in para-
graph (1) shall be Members of the Congress,
leaders of business or labor, representatives of
the plan sponsor and plan participant commu-
nities, distinguished academics, individuals with
technical expertise in pension administration, or
other individuals with distinctive qualifications
or experience in retirement income policy.
(b) TERMS.—Each member shall be appointed for the
life of the Commission.
(c) VACANCIES.—A vacancy in the Commission shall
be filled not later than 30 days after the date of the cre-
ation of the vacancy in the manner in which the original
appointment was made.
(d) COMPENSATION.—
(1) RATES
OF
PAY.—Except as provided in
paragraph (2), members of the Commission shall
serve without pay.
(2) TRAVEL EXPENSES.—Each member of the
Commission shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States
Code.
(e) QUORUM.—Ten members of the Commission shall
constitute a quorum, but 6 members may hold hearings,
take testimony, or receive evidence.
(f) MEETINGS.—The Commission shall meet at the
call of the co-chairpersons.
(g) DECISIONS.—Decisions of the Commission, other
than recommendations adopted pursuant to section 3,
shall be made by consensus when possible, or otherwise
according to the majority vote of those members who are
present and voting at a meeting called pursuant to sub-
section (f).
SEC. 5. STAFF AND SUPPORT SERVICES.
(a) RECOMMENDATIONS REGARDING STAFF.—There
shall be two co-directors of the staff of the Commission.
Each co-chairperson of the Commission shall recommend
an individual to serve as co-director of the staff of the
Commission. Each co-chairperson shall also recommend
such additional professional staff to serve under each co-
director as are required to carry out the duties of the Com-
mission. The 2 co-directors of the staff shall report to
their respective co-chairperson and shall work coopera-
tively to manage the day-to-day operations and staff of
the Commission.
(b) APPOINTMENT OF STAFF.—Acting upon the rec-
ommendations of the co-chairpersons, the Commission
shall appoint and fix the pay of the co-directors and any
additional staff.
(c) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The co-directors and staff of the Commission may
be appointed without regard to the provisions of title 5,
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule
pay rates.
(d) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code, at rates
the Commission determines to be appropriate.
(e) STAFF OF FEDERAL AGENCIES.—Upon request
of the Commission, the head of any Federal agency may
detail, on a reimbursable basis, any of the personnel of