Ferguson Applauds Inclusion of Retirement Provisions to Benefit Airline Pilots in Ways and Means Markup Package

Press Release

U.S. Congressman Drew Ferguson (R-Ga.), Chief Deputy Whip of the House Republican Conference and a member of the House Ways and Means Committee, applauded the passage of the Securing a Strong Retirement Act of 2021 during today's committee markup.

The bipartisan retirement package would provide more retirement savings and contribution options for America's workers as they near retirement. Ferguson and his colleagues unanimously supported bipartisan provisions focused on expanding coverage and increasing retirement savings, preserving income, as well as simplifying and clarifying retirement plan rules. Under this package, those aged 62, 63, and 64 -- including pilots -- would have higher allowable catch-up contributions, with up to $10,000 additional per year for employer-sponsored plans and $5,000 for SIMPLE plans. Both would then be annually adjusted for inflation and become effective for tax years beginning after 2020.

Ferguson recently introduced a related bill, the Airline Pilots Retirement Security Act, alongside U.S. Congressman Adrian Smith (R-NE). The bill would allow older airline pilot employees subject to a federally mandated retirement age to double the amount of annual pre-tax - or Roth - contributions they can make into an employer contribution retirement plan for the three years prior to their retirement.

"While there is still more work to be done in the retirement space, the passage of the Securing Strong Retirement Act is a successful step toward empowering America's workforce to save for a secure retirement," Ferguson said. "With the Airline Pilots Retirement Security Act, I'm proud to partner with Congressman Adrian Smith to put airline pilots on a level playing field with other professions."

Click here to watch Ferguson's remarks during the markup.

Background:

Airline pilots are one of the few professions with a mandatory retirement age. As a result, pilots do not have the same length of time to save for their retirement as many other employees. Additionally, pilots who are born in 1960 or later will not qualify for full social security benefits until the age of 67 (two years after their mandatory retirement) and are penalized for early withdrawal. Under the Airline Pilots Retirement Security Act, airline pilots would be allowed a higher catch-up contribution limit to apply for three years before the age of their mandated retirement at age 65.

The bill also includes a proposal modifying the adjustments to the elective deferral limit under a qualified defined contribution plan. The new elective deferral limit will subsequently be raised from the previous limit of $58,000 to $68,000.

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