AARP CEO William D. Novelli said the following today about the Pension Protection Act of 2006:
The biggest benefit of the pension bill for individuals may be its positive effect on savings. With improvements to the savers tax credit and new provisions encouraging employers to automatically enroll more workers in 401(k) plans, more members of the next generation of Americans will save. Of course, they’ll need to save more, because the pension law does not address the ongoing decline in traditional pensions. However, the bill does protect individuals from "wearaway"—having their benefit frozen for years—when their employer converts to a cash balance or other hybrid pension plan. The bill also leaves much unfinished business, as it does not address the half of the workforce with no pension at all.
AARP will continue to work to address the financial and retirement security needs of all generations of Americans. These include Social Security, pensions and savings and promoting opportunities for 50+ workers.