Bush Pension Proposals Not Finding Enthusiastic Audience Pensions & Investments (09/02/02) p.6; Anand, Vineeta
Some observers say that the poor state of the stock market is not encouraging investors to contribute more money to their retirement plans, so that the president's proposal to increase retirement plan contribution limits is not going over well. According to the Employee Benefit Research Institute, only 11 percent of plan participants contributed the maximum amount in 1999. The president's package would include a higher age at which retirees must begin withdrawing money from their accounts. AFL-CIO Associate General Counsel Damon Silvers says that the proposals would probably only have negative consequences, like increasing the federal budget, and suggests promoting new savings for lower-income workers by extending the tax credit for those who contribute to retirement plans. The president's proposal is considered political rather than policy-based but will probably get support in the House.