As reported by the National Tax Deferred Savings Association, bipartisan legislation is creating a new federal commission that’s going to deal with studying and the recommendation of ways to improve Americans’ retirement security policies. The Federal Retirement Commission Act submitted on May 14 required the commission to review private retirement benefit programs (except for Social Security program) and provide a report to Congress on how to improve the security of these programs.
The main reason for creating this commission was the fact that current retirement programs needed significant changes in order to help secure the future for many working people of the United States.
Senators noted that it’s been around 40 years since the last survey was conducted, obviously referring to the President’s Commision on Pension Policy established by President Carter back in 1979.
The commission members will be in charge of reviewing:
- private benefit programs focused on transitioning from DB to DC models
- private retirement coverage, individual trends, individual and household accounts balances, etc.
- trends in society (wage and economic growth, small business challenges, and so on)
- retirement programs in other countries
Based on an affirmative vote of at least 75% of the commission members, recommendations on how to replace or improve the existing retirement programs will definitely be proposed.