Pensions: Major Provisions of the Retirement Security and Savings Act of 2000

Publication Date: January 2001

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

On September 13, 2000, the Senate Finance Committee reported H.R. 1102 (S.Rept . 106-411) as a tax reconciliation bill known as the Retirement Security and Savings Act of 2000. This bill contained many provisions similar to the Comprehensive Retirement Security and Pension Reform Act of 2000, H.R. 1102 as passed by the House of Representatives on July 19, 2000. The main additions in the Senate bill were provisions that would have provided (1) a nonrefundable tax credit to low- and middleincome taxpayers 18 and over who contribute to a qualified retirement plan or individual retirement account (IRA), and (2) a tax credit to small employers to defray some of the start-up costs of establishing an employee pension or retirement savings plan.

The Joint Committee on Taxation estimated that the proposals in the Chairman's Mark and its modifications would result in a revenue loss of $26.7 billion over 5 years and $42.3 billion over 10 years. A separate report describes the House-passed version of H.R. 1102.1 Although the Senate approved a motion to consider the conference report on H.R. 2614 which included the pension provisions of H.R. 1102, the measure was not passed before the 106th Congress adjourned in December 2000. This report will not be updated.