Reps. Benjamin L. Cardin, D-Md., and Rob Portman, R-Ohio, both members of the House Ways and Means Committee, plan to introduce bipartisan pension legislation early next week.
The bill would encourage employers to set up defined benefit and defined contribution plans and would raise limits on how much employers and employees can contribute to both.
The legislation also contains provisions designed to eliminate regulations that might keep employers from offering retirement plans. Among the more important provisions: the bill would raise contribution limits to 401(k) plans to $15,000 a year, from $10,000. It also would allow participants older than 50 to contribute an additional $5,000 a year to DC plans to catch up for years when they could not afford to contribute. In addition, participants in SIMPLE retirement plans would be allowed to contribute up to $10,000, vs. the current $6,000.