Generate Retirement Ownership Through Long-Term Holding Act of 2007

Mr. President, I rise today to introduce the Preparing America's Seniors for the Digital Television Transition Act of 2007. Seniors are particularly vulnerable to slipping through the cracks of the digital television transition. Not only are they more likely to rely on free over-the-air analog TV, but for many seniors television is their only link to the outside world. Yet the majority of the public remains unaware of the impending digital television transition. Millions of Americans may turn on their TVs on February 18, 2009, only to find themselves left in the dark without access to critical weather updates, emergency alerts, news or entertainment programming. In my home state of Wisconsin alone, over half a million households rely on free over-the-air TV.

As Chairman of the Special Committee on Aging, I recently held a hearing entitled, ``Preparing for the Digital Television Transition: Will Seniors Be Left in the Dark?'' Our hearing uncovered several concerns. First, seniors need targeted outreach about the transition and the related coupon program. Second, there is shockingly little coordination between the Government agencies overseeing the transition and the voluntary industry efforts to educate consumers. Third, nonprofit organizations require additional resources to sufficiently assist seniors with navigating the transition. Finally, the Government's plan to provide coupons to partially offset the cost of a converter box is fraught with confusion and vulnerable to fraud and abuse.

My legislation will address these problems by creating a formalized partnership between the Federal Communications Commission, the National Telecommunications and Information Administration and the Administration on Aging with specific reporting requirements. Together these entities will work with stakeholders such as the broadcasters, the aging network, disability groups, rural Americans, and State, local and tribal governments to craft a coordinated outreach campaign. This legislation will also establish a grant program to ensure that nonprofits and state and local government agencies, like area agencies on aging, have access to assistance as they help seniors and other vulnerable populations navigate the transition and the coupon program.

This legislation will help safeguard seniors and their families by facilitating a number of common sense solutions. The bill requires commercial broadcasters to air public service announcements and develop consumer education plans to meet the needs of local viewers. It requires that coupon-eligible converter boxes are easily identifiable to mitigate the potential of consumers being swayed into purchasing expensive equipment they do not need. It also requires that manufacturers of converter boxes maintain a toll-free 1-800 number to assist individuals with installation. It sets specific reporting requirements for the FCC and NTIA to monitor the progress of their consumer awareness campaign and the coupon program. The legislation also modifies the coupon program to ensure that households relying solely on over-the-air television sets are prioritized and that residents of nursing homes and assisted living facilities are eligible to participate.

I want to thank the following organizations for endorsing this legislation: AARP, the Association for Public Television Stations, the National Association of State Units on Aging, the National Association of Area Agencies on Aging, American Association of Homes and Services for the Aging, the Meals on Wheels Association of America, and the National Association of Nutrition and Aging Services Programs.

Senior citizens deserve to receive targeted outreach and complete information about the upcoming transition. They do not deserve to be the brunt of fraudulent schemes or to be left in the dark after February 17, 2009. I believe we must prepare America's seniors, and I hope my colleagues will join in my effort to do so.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I rise today to introduce, along with my colleagues Tim Johnson of South Dakota and Judd Gregg of New Hampshire, an important bill that will allow Americans to save more for the long term and will better prepare them for a secure retirement. The Generating Retirement Ownership Through Long-Term Holding, GROWTH Act, had substantial bipartisan support in the House last Congress, and has been introduced in a bipartisan manner again in the House this Congress. Mr. Johnson and I are proud to introduce in the Senate this bipartisan legislation that provides Americans a better tool to grow their long-term retirement savings.

The GROWTH Act would allow investors in mutual funds to keep more retirement savings invested longer and growing longer by deferring taxation of automatically reinvested capital gains until fund shares are sold, rather than allowing those long-term gains, which generate no current income or cash in hand, to be taxed every year.

To understand how beneficial this bill would be, it is important to understand the role of mutual funds in long-term retirement savings. Among households owning mutual funds, 92 percent are investing for retirement, with more than 70 percent saying their primary purpose in investing in funds is to prepare for retirement. Many of today's workers do not yet have in place the retirement savings supplement to Social Security that will prepare them for the future. In fact, almost half of American workers, nearly 75 million of 155 million workers--are not offered any form of pension or retirement savings plan at work.

Meanwhile, the number of years spent in retirement is growing and the

costs individuals can expect to bear in retirement are growing, too. The Employee Benefit Research Institute estimates that an individual retiring at age 65 in 2016 will need more than $300,000 just to cover health coverage premiums and expenses. Individual savings efforts also face significant obstacles. Those not covered by an employer's retirement plan, for example, can set aside a deductible IRA contribution of only $4,000 this year, $5,000 if they are age 50 or older.

Mutual funds are a hugely important part of American workers' preparation for retirement, both through their employers' retirement plans and on their own. Mutual funds now make up about half of the $4.1 trillion held by American workers through 401(k) plans and other similar job-based savings programs. About 38 million American investors hold mutual funds through their defined contribution plans. More than 31 million American investors are saving through taxable mutual fund accounts, either as supplements to their employers' plans or because they do not have such plans.

The GROWTH Act is also a good idea because it remedies an unfairness in the tax code that can make saving difficult for many Americans. Mutual fund investors who are struggling to save for retirement should not have to pay taxes on ``profits'' they have not realized. If they don't have money in hand, it makes no sense for them to have to pay taxes. The GROWTH Act would defer taxes until the mutual fund shares are sold and the investor has actual funds to pay the taxes.

The GROWTH Act would be a valuable contributor to retirement savings efforts. Mutual fund savers who automatically reinvest are doing what policymakers want to see. They are holding for the long term, contributing to national savings, and building up their own retirement nest egg. These Americans should be encouraged to save, not discouraged through a tax on automatic reinvestments. The GROWTH Act is a step that will show immediate results, a step that will help tens of millions of American savers and ``should-be savers'' over the course of their working lives, and a step that with time can make a real difference in the retirement readiness of American families.

I urge my colleagues to join Mr. Johnson and me in supporting the GROWTH Act. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I rise today to introduce, along with my colleagues Tim Johnson of South Dakota and Judd Gregg of New Hampshire, an important bill that will allow Americans to save more for the long term and will better prepare them for a secure retirement. The Generating Retirement Ownership Through Long-Term Holding, GROWTH Act, had substantial bipartisan support in the House last Congress, and has been introduced in a bipartisan manner again in the House this Congress. Mr. Johnson and I are proud to introduce in the Senate this bipartisan legislation that provides Americans a better tool to grow their long-term retirement savings.

The GROWTH Act would allow investors in mutual funds to keep more retirement savings invested longer and growing longer by deferring taxation of automatically reinvested capital gains until fund shares are sold, rather than allowing those long-term gains, which generate no current income or cash in hand, to be taxed every year.

To understand how beneficial this bill would be, it is important to understand the role of mutual funds in long-term retirement savings. Among households owning mutual funds, 92 percent are investing for retirement, with more than 70 percent saying their primary purpose in investing in funds is to prepare for retirement. Many of today's workers do not yet have in place the retirement savings supplement to Social Security that will prepare them for the future. In fact, almost half of American workers, nearly 75 million of 155 million workers--are not offered any form of pension or retirement savings plan at work.

Meanwhile, the number of years spent in retirement is growing and the

costs individuals can expect to bear in retirement are growing, too. The Employee Benefit Research Institute estimates that an individual retiring at age 65 in 2016 will need more than $300,000 just to cover health coverage premiums and expenses. Individual savings efforts also face significant obstacles. Those not covered by an employer's retirement plan, for example, can set aside a deductible IRA contribution of only $4,000 this year, $5,000 if they are age 50 or older.

Mutual funds are a hugely important part of American workers' preparation for retirement, both through their employers' retirement plans and on their own. Mutual funds now make up about half of the $4.1 trillion held by American workers through 401(k) plans and other similar job-based savings programs. About 38 million American investors hold mutual funds through their defined contribution plans. More than 31 million American investors are saving through taxable mutual fund accounts, either as supplements to their employers' plans or because they do not have such plans.

The GROWTH Act is also a good idea because it remedies an unfairness in the tax code that can make saving difficult for many Americans. Mutual fund investors who are struggling to save for retirement should not have to pay taxes on ``profits'' they have not realized. If they don't have money in hand, it makes no sense for them to have to pay taxes. The GROWTH Act would defer taxes until the mutual fund shares are sold and the investor has actual funds to pay the taxes.

The GROWTH Act would be a valuable contributor to retirement savings efforts. Mutual fund savers who automatically reinvest are doing what policymakers want to see. They are holding for the long term, contributing to national savings, and building up their own retirement nest egg. These Americans should be encouraged to save, not discouraged through a tax on automatic reinvestments. The GROWTH Act is a step that will show immediate results, a step that will help tens of millions of American savers and ``should-be savers'' over the course of their working lives, and a step that with time can make a real difference in the retirement readiness of American families.

I urge my colleagues to join Mr. Johnson and me in supporting the GROWTH Act. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, today, I heard disturbing testimony during a Senate HELP Committee hearing on the Crandall Canyon Mine disaster about the misinformation that families received during the tragedy. When I met with many of the family members of the miners involved in the accident, I saw the enduring pain of their loss, and, although there is nothing I can do to take that pain away, I can work to ensure that if other families are ever faced with such tragedy in the future, they will be cared for with respect, dignity, and consistency.

I am proud to introduce the Mine Disaster Family Assistance Act of 2007, closely modeled after the National Transportation Safety Board's highly effective family assistance model used during major aviation accidents in this country to care for victims and their families.

This bill puts families who experience such a tragedy first by establishing a director of family support services at MSHA. This person would serve as the Federal Government's point-of-contact for families during an emergency. The director would be responsible for the overall coordination of family services provided by all parties involved in a mine emergency and ensure that families receive consistent information first during rescue and investigation efforts.

Second, it requires the designation of an independent nonprofit organization with experience in disasters and post trauma family communication, such as the American Red Cross, ARC, as the primary coordinator of emotional care and support for families. This organization will provide mental health and counseling services to families, and a private place to grieve; meet with family members onsite; and update families on accident and post accident activities.

Third, it requires mine operators to submit a strategic plan to clearly establish accident protocols for meeting the needs of families before an emergency occurs. To ensure these plans are submitted and approved in a timely fashion, the bill also prohibits approval of other operating plans until a mine has an MSHA-approved family assistance plan.

Finally, it gives families a voice in the process by including them as a required partner in a task force designed to provide recommendations for program enhancements. Other partners include mine operators, including operators of small mines, labor, the ARC, and the Bureau of Land Management.

We all agree that families who have lost loved ones in mining tragedies like those at Sago and Crandall, deserve our best efforts to provide consistent communication and support. The landmark MINER Act, signed into law last year, was a good first step in this direction, but these tragedies demand that we take additional steps to ensure that the victims' families receive the best information and care possible during an emergency.

Mr. President, I am pleased today to once again join my colleague Mike Crapo of Idaho in introducing a bill with growing bipartisan support, a bill that promises to be an important part of the many steps we will need to take to help Americans save more effectively for the many long-term needs they must increasingly plan for on their own--health, education and retirement.

Currently, mutual fund investors who are saving outside a 401(k) plan or an IRA find themselves taxed every year as a result of the buying and selling that is part of fund diversification, even if they have arranged to automatically reinvest any capital gains, even though they sold no shares, in fact, even if the value of their investments have fallen.

As a result, each year during tax season, we hear from investors who have worked hard and played by the rules. These are Americans who are committed to a plan of saving for the long term, who nevertheless find themselves hit with a tax bill although they are simply staying the course. Mr. Crapo and I don't believe that these people should be discouraged from long-term investing and taxed I prematurely when a better-timed tax--one that comes in when investments are sold--would better facilitate long-term investing, retirement readiness, and perhaps even tax compliance through simpler calculations and fewer annual adjustments.

Congress has spent a great deal of effort trying to strengthen and promote pension promises, through both defined benefit and defined contribution plans. Yet many of today's workers do not yet have in place the retirement savings to supplement Social Security benefits. In fact, almost half of American workers--nearly 75 million of 155 million workers--are not offered any form of pension or retirement savings plan at work. These are the people who need GROWTH the most.

And the challenge they face for the future is growing. The number of years Americans and their families can expect to spend in retirement is growing, as are the costs individuals can expect to bear in retirement. Individual savings opportunities for those who spend some or all of their working years without participating or vesting in an employer's retirement plan are modest. Those workers covered by an employer's retirement plan, for example, can set aside a deductible IRA contribution of only $4,000 this year, $5,000 if they

are age 50 or older. Many will want and need to save more every year if they are to be ready for retirement. These are the people who need