Lawmakers OK Bill With Annuity LTC Rider Provision

Johnson says H.R. 3820 is a "fair and tough bill."

"Our bill makes companies put their money behind their promises and gives employees good information on the health of their pension plan," Johnson says, "We need to get this bill to conference with the Senate and then quickly enacted early next year so that it will provide certainty and stability in the private pension system."

Even some Democratic opponents of the bill said they like many of the bill's provisions.

"On balance this bill would do more harm than good," Rep. Ben Cardin, D-Md., said on the House floor.

But Cardin praised an H.R. 2830 provision that would extend the "saver's credit" for low-income and moderate-income Americans and provisions dealing with defined contribution plans, such as those allowing for automatic enrollment of employees in a 401(k).

Both Republicans and Democrats criticized H.R. 2830 defined benefit plan provisions. Some lawmakers said stricter funding rules included in the bill could discourage employers from offering defined benefit plans. Other lawmakers said the bill could make it too easy for employers to dump responsibility for pension plans onto the shoulders of the Pension Benefit Guaranty Corp. pension insurance program.

During floor debate, opponents compared the bill to efforts made earlier this year to "privatize" the Social Security system.

"This whole year has been about doing it to people," said Rep. Jim McDermott, D-Wash., who said both efforts would effectively force retirees to make it on their own with no government support. McDermott also referred to the bill as "abusive, irresponsible and morally bankrupt."