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Senior Citizen Politics
New Senate Bill Aims to Help Senior Citizens, Aging
Baby Boomers Stay in Workforce
Retirement trends could create a U.S. labor shortage
of 4.8 million workers in 10 years
May 7, 2008 - Although many of today's senior
citizens find it is tough to find employment it may get a little easier
is a new Senate bill passes. The bi-partisan bill has been introduced in
the Senate to prevent projected dramatic declines in the workforce
following the retirement of the baby boomers. It will provide incentives
and eliminate barriers for older Americans wishing to stay in the
workforce longer, and encourage employers to recruit and retain older
workers.
The Incentives for Older Workers Act (Senate Bill
2933) was
introduced in April by Senators Gordon H. Smith (R-OR), Herb Kohl
(D-WI), and Kent Conrad (D-ND). Smith is Ranking Member of the U.S.
Senate Special Committee on Aging and Kohl is Chairman.
A colossal demographic shift is on the horizon,
said Senator Smith. Retiring baby boomers will cause significant gaps
in our workforce if we do not incentivize them to work longer. We need
to ensure the door stays open for those willing and able to remain an
active part of the workforce during their golden years.
With the retirement wave upon us, we must
encourage employers to adopt policies now to attract and retain older
workers, said Senator Kohl.
Our commonsense policy creates a win-win situation
for both older workers and the companies that employ them.
This legislation confronts the changing face of
retirement. The divide between working and retirement is no longer the
bright line it once was. Many workers stay on the job longer, not just
because they have to but also because their employers want them to
stay, Senator Conrad said. What we offer in the Incentives for Older
Workers Act would make sure older employees who want to cut back their
work schedules won't lose pension benefits as a result.
A 2007 Conference Board study reports that current
retirement trends could create a U.S. labor shortage of 4.8 million
workers in 10 years.
The Incentives for Older Workers Act works to
reduce this decline by:
● 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.
● 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.
>>
For full details on the bill, click here
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