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News Notes: Pension Reform May Be Coming; IRA Payroll Deductions Urged

Several bills pending in Congress could impact your pension plans. HR 1102 would increase the amount workers can contribute to 401(k) accounts and require faster vesting of matching employer contributions. It would also introduce new Roth 401(k)s and 403(b)s, allowing employees to contribute after-tax dollars but receive tax-free retirement benefits. Another measure, S 659, would require employers converting defined benefit pension plans into cash balance plans to issue statements to workers comparing each plan’s benefits. In related news, the IRS is encouraging employers to allow workers to contribute to traditional IRAs or Roth IRAs by direct deposit through payroll deductions.