The securities industry is fighting back.
The Securities Industry Association launched a campaign urging its members to write to their lawmakers in support of bipartisan pension legislation that would hike the 401(k) contribution limit to $15,000 from $10,500 and the IRA limit to $5,000 from $2,000.
The campaign is aimed at countering negative publicity by the Center on Budget and Policy Priorities, a left-leaning Washington-based think tank that fears the legislation would disproportionately benefit top earners while doing little for lower income families.
The Washington-based SIA June 26 posted on its website a form letter members can send their lawmakers. "The legislation will result in more employer-sponsored pension plans and increase pension benefits for all workers," it states.
Meanwhile, the Center on Budget and Policy Priorities last week posted analysis on its website showing the legislation actually would risk pension coverage for low- and moderate-income workers in small businesses because small-business owners would contribute to IRAs and not bother with providing 401(k)-type retirement plans.