Signing off on our first piece of legislation this month, AMAC is proud to announce support for S.1270, the “Secure Annuities for Employee Retirement Act of 2013,” or “SAFE Act.” This bill – introduced by an ardent champion of seniors issues, Sen. Orrin Hatch (R-UT) – addresses critical concerns necessary to secure retirement savings for millions of hard-working Americans. Through a series of simple public and private reforms to current pension plans, S.1270 helps people bridge the gap between work and retirement. S.1270 establishes a Starter 401(k) that acts as a new, private mechanism through which businesses can encourage employees to save money, and the SAFE Retirement Plan eliminates pension plan underfunding so that state and local governments can more securely deliver retirement benefits. With 40 percent of AMAC members still working and 51 percent of businesses offering no pension plan whatsoever, S.1270 is crucial to helping workers prepare adequately for retirement. As an ongoing advocate for the responsible reform of pensions, AMAC emphatically endorses the S.1270, SAFE Act of 2013.
August 2nd, 2013
The Honorable Orrin Hatch
104 Hart Senate Office Building
Washington, DC 20510
Dear Senator Hatch,
I am writing today on behalf of the 750,000 members of AMAC, the Association of Mature American Citizens, to extend our support to S.1270, the “Secure Annuities for Employee (SAFE) Retirement Act of 2013.” AMAC firmly believes that this important piece of legislation addresses a crucial change necessary to secure retirement savings for millions of Americans – particularly mature Americans and seniors – by strengthening the public and private pension benefit system.
While the high unfunded pension liabilities of state and local governments threaten the long-term fiscal health of our nation, S.1270 seeks to improve pension plans through a series of simple public and private reforms to current plans. Of note, 40 percent of AMAC members are still active participants in the workforce and are looking for ways to save money for retirement. Still, many Americans are struggling to adequately prepare for retirement. With 51 percent of American businesses offering no pension plan whatsoever, S.1270 helps hard-working Americans bridge the gap from work to retirement by establishing a Starter 401(k) that acts as a new, private mechanism through which small businesses (that are not in a position to financially contribute to a plan) can help their employees save money. In addition, this legislation enacts the SAFE Retirement Plan – a state-regulated, market-based plan that eliminates pension plan underfunding and enables state and local governments to more securely deliver retirement benefits.
The concepts set forth in S.1270 are simple and practical. Employers and taxpayers are guaranteed stable, predictable, and affordable pension costs, and employees are promised a secure, lifetime pension that cannot be underfunded. AMAC emphatically supports the principles of this bill, which enable workers to retire with financial security and give peace of mind to seniors and employers.
Like many Americans, AMAC is aware that pension plan reform plays an integral role in the larger effort to address our country’s debt crisis. AMAC is deeply committed to helping all Americans – young and old – prepare for retirement, and we believe that this legislation will expand pension coverage while helping to revive our economy. As an ongoing advocate for the responsible reform of pensions, AMAC is proud to endorse S.1270, the “SAFE Act of 2013.”
President and Founder of AMAC