Senate considers law boosting older workers
May 3rd, 2008Legislation was introduced in the U.S. Senate last week aimed at making it easier for older Americans to stay in the 
workforce longer and encourage employers to recruit and retain older workers. The bill has bi-partisan sponsorship of Senators Gordon H. Smith (R-OR), Herb Kohl (D-WI), and Kent Conrad (D-ND).
I’ll have more on this in a future column over at RetirementRevised, but here are key provisions, according to a press release from the sponsors:
- Removing penalties in certain pension plans for workers who phase into retirement by receiving a lower salary while working reduced hours;
- Allowing seniors to earn delayed retirement credits for Social Security purposes for an additional two years until age 72, instead of age 70;
- Reducing the amount of Social Security benefits lost to seniors who claim benefits before reaching normal retirement age and while they continue working;
-Forming a National Resource Center on Aging and the Workforce within the Department of Labor to collect, organize and disseminate older worker information;
- Changing how Civil Service Retirement System (CSRS) annuities are calculated by correcting a glitch that results in a disproportionate reduction in benefits for certain employees who phase into retirement by working part-time;
- Requiring states to include older worker representatives on the state and local workforce investment boards and set aside five percent of the Workforce Investment Act (WIA) funds to assist older individuals;
- Expanding eligibility of the Work Opportunity Tax Credit (WOTC) to include older workers; and
- Clarifying that certain defined benefit pension plans can define normal retirement age under their plans as the earlier of (1) the attainment of a specified age or (2) attainment of 30 or more years of service.
Kohl chairs the U.S. Senate Special Committee on Aging; Smith is its ranking member. A recent committee hearing on the bill is available as a webcast [requires Real Player].
