Letter to Represenative Rob Portman and Ben Cardin Regarding Portman/Cardin Bill
March 9, 2005
The Honorable Benjamin L. Cardin
The United States House of Representatives
2207 Rayburn House Office Building
Washington, DC 20515
Dear Representative Cardin:
As you prepare pension and retirement reform legislation for introduction in the House of Representatives, the Credit Union National Association (CUNA) and America's nearly 86 million credit union members, urge you to include therein provisions that will extend and strengthen the SAVERs tax credit for low- and moderate-income tax payers.
The saver's credit, enacted in 2001 as a temporary measure, provides a government matching contribution for voluntary contributions of moderate- and lower- income individuals to 401(k) plans, individual retirement accounts (IRAs) and similar retirement arrangements. Although it has successfully increased retirement savings, its current status limits its ability to provide significant help to low- and middle-income families.
The national savings rate has fallen to a historic low, threatening the economic future and the financial prospects of millions of credit union members who will be retiring in the years ahead. CUNA has a long-established record in support of increasing the savings rate, particularly among low- and moderate-income Americans. A refundable SAVERs credit, allowing the full credit for taxpayers with no tax liability against which to apply the credit, would do much to encourage increased retirement savings for taxpayers most in need of it.
We pledge to work with you and your highly able staff to build on that support and obtain passage of greatly needed retirement savings legislation.
Daniel A. Mica
President & CEO
Credit Union National Association