Rep. Engel Supports Bill Protecting Seniors Retirement Funds

Legislation Initiated by Minority Leader Liam McLaughlin(right), Passed by Yonkers City Council Consequently Passes House and Senate, Awaiting President’s Signature

 

Congressman Eliot Engel (left) was proud to support H.R. 7327 – the Worker, Retiree and Employer Recovery Act (WRER) of 2008 – which passed the House by unanimous voice vote on December 10 and passed the Senate by unanimous consent the following day.  The legislation now awaits President Bush’s expected signature to become law.

 

“America’s seniors have already given so much to our country – years of their labor and of their service – and they should not be asked to continually give back as they enter their retirement years.  With our country facing historic economic challenges, we had to provide some relief to our parents and grandparents to ease the burden on them,” said Rep. Engel.  “This bill will provide temporary relief to seniors, to families, and to businesses to help them make it through this current crisis and emerge in good shape once it passes.”

 

The provisions of the bill include the suspension for one year of an Internal Revenue Service requirement that account holders of 401(k)-style plans must withdraw a minimum amount of money every year after they reach 70 ½ years old.  This suspension would be available to everyone regardless of their retirement account balances and would enable seniors to avoid a tax hit when the market was down – an important feature given the state of the nation’s economy.

 

Currently, if seniors do not take out a minimum amount based on an Internal Revenue Service formula, they are subject to a 50 percent penalty.  For instance, if an individual fails to withdraw $4,000, they would be assessed a $2,000 tax the next year.  H.R. 7327 also eases funding requirements for companies and other pension plans forced to make additional contributions as a result of the economic downturn and makes technical corrections to the Pension Protection Act of 2006.

 

The City of Yonkers recently passed legislation that calls for this very provision.  Minority Leader and Budget Chairman Liam McLaughlin applauded the passage of the bill, “I am very happy to see our representatives at the Federal level pay such close attention to the needs of our senior citizen community.  As an elder law attorney, I have seen too many seniors hurt by this penalty and this measure will go a long way to easing the burden.  When passing our legislation, I knew that we could count on Congressman Engel to ensure its passage.”

 

Rep. Engel added, “I am pleased that the United States Congress acted swiftly to enact this legislation and I commend Councilman McLaughlin and the City of Yonkers for doing their part in shining light onto this issue.  We will need this type of stop-gap measure in the next Congress to help people navigate the economic difficulties we are currently experiencing.  Partnerships with local governments go a long way towards helping us accomplish this.”

Comments

This legislation was proposed by dozens of legislators around the country. But here comes McLaughlin trying to claim credit.

Hezi gets it wrong again. McLaughlin's legislation was in support of what was already proposed, it wasn't McLaughlin's initiative. Hezi stop the spin. McLaughlin threw you a crumb by going on your radio show and now he's the greatest thing since sliced bread? Hezi's so hungry to be in-the-know that he believes every bit of pap, rumor and innuendo from anyone with an agenda or an axe to grind. Hezi doesn't realize that he's being duped and used by all.

The only issue I can contest with this post is that it is not I that referred to this proposal as a McLaughlin initiative but rather Congressman Engel. As for the rest, it is for you to judge.

Kindly,
Hezi