MARCH 2001

At press time, IEEE-USA issued an urgent call for action on pending retirement savings legislation.  Click here to read the Legislative Alert and find out what you can do to help.

IEEE-USA Will Continue Retirement Savings Reform Efforts in 2001

by Tim Grayson


The IEEE-USA Engineering Employment Benefits Committee (EEBC) continues to see advances being made toward reforming U.S. retirement benefits policy. While little related legislation made it into law last year—largely due to the fact that only limited legislation went through the full cycle during the election season—several related bills made it through one chamber or the other. They will be revisited this year.

IEEE-USA is working as part of a larger consortium of professional societies to push for multiple retirement benefit reforms.  Much of the effort has focused on retirement portability.  In today’s business environment, employees change jobs frequently. Many become frustrated by the inability to move their retirement savings between different types of tax-deferred savings funds. 

Current tax law prohibits mixing funds saved while employed by commercial for-profit (401k), non-profit (403b), or state government (457) organizations, so if engineers change jobs between these sectors, they are forced to carry several diverse, difficult-to-manage funds. Legislation championed by IEEE-USA would eliminate this provision. In addition, the consortium is seeking changes that would expand Roth IRA options and relax vesting rules; these changes would give engineers greater career flexibility as well.

A key reason for IEEE-USA’s ability to move this legislation forward and keep the momentum on Capitol Hill is because we are working in partnership with other organizations. Despite the size of the IEEE's U.S. membership, the diversity and size of this consortium leverages the power of all partners’ constituents further.

We will continue to build consensus groups such as this one as the year goes on. By working together, we will have a stronger voice as we work to overcome the many challenges related to engineering employment benefits.

To find out more about IEEE-USA retirement issues activity or to get involved, contact IEEE-USA Senior Legislative Representative Vin O'Neill (v.oneill@ieee.org) or visit the Retirement Security Grassroots Network at: www.ieeeusa.org/forum/grassroots/pensions/index.html.

Tim Grayson is chair of IEEE-USA's Engineering Employment Benefits Committee.  Write him at: todaysengineer@ieee.org.