Women’s retirement bill introduced

The Women’s Retirement Security Act of 2007 was introduced in the Senate yesterday In an effort to help women save for retirement. The legislation was introduced by a bipartisan group of senators: Gordon Smith R-Ore., Kent Conrad, D-N.D., John Kerry D-Mass., Jeff Bingaman, D-N.M. and Olympia Snowe, R-Me. The legislation would require employers to allow long-term part-time employees to contribute to 401(k) plans. Women live longer than men on average, Mr. Smith said in a press release. “Unfortunately, due to unique circumstances women face in their lifetime, the current pension structure makes it more difficult for women to prepare for retirement,” he said. Employers that do not sponsor a retirement plan would be required to allow employees to contribute a portion of their salary to an individual retirement account under the legislation. Small businesses would be given tax incentives and they would receive simplified treatment of retirement plan rules to encourage them to enter and remain in the employer retirement system under the bill as well. A provision in the legislation creating incentives to convert a portion of retirement saving into an annuity was applauded by the American Council of Life Insurers in Washington. Women tend to have fewer years than men in the full-time workforce, interrupting their careers to take care of children and aging parents, ACLI president and chief executive Frank Keating said in a press release. “As a result they are particularly at risk of outliving their retirement assets if they fail to manage them well,” Mr. Keating said.