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Senior Citizen Politics
Aging Committee Hearing Sparks Two Bills by Sen.
Kohl to Encourage Older Workers
Economic growth may decline significantly due to
declining labor force
 March 1, 2007 - Two bills that will give older
Americans the opportunity to work longer, if they choose, and offer
incentives to businesses for employing older workers, were introduced
yesterday by Senate Special Committee on Aging Chairman Herb Kohl
(D-WI). The action followed a committee hearing that heard testimony
that economic growth could decline significantly as a result of the
declining labor force due to the aging society.
Donald Kohn, Vice Chairman of the Board of
Governors of the Federal Reserve System, testified that economic growth
could decline significantly to 2.2 percent by 2015 as a direct result of
the declining labor force participation. The rate of growth over the
past 40 years has been an average of 3.2 percent.
Comptroller General of the United States and head
of the Government Accountability Office David Walker also testified,
including as part of his testimony GAO's report on the Comptroller
General's Forum on Engaging and Retaining Older Workers, which was
released publicly yesterday. The report discusses key obstacles to
engaging and retaining older worker, best practices and lessons learned,
and suggested strategies.
"The retirement of the Baby Boom generation
threatens to limit the potential of our economy, but demography is not
destiny. Studies show that as older Americans live longer and healthier
lives, many are planning to work longer," said Kohl.
"We must encourage businesses to adopt policies now
to attract and retain older workers as they are confronted with the
coming labor force shortage."
Two bills introduced by Kohl
One of the bills introduced by Kohl, the Older
Worker Opportunity Act of 2007, is co-sponsored by Senators Cochran
(R-MS), Durbin (D-IL), Lincoln (D-AR), and Craig (R-ID). It provides a
tax credit for businesses that employ older workers (ages 62 and up) in
a "flexible work program," which must provide a full- or part- time
flexible work schedule and full pension and health care benefits.
The credit equals 25 percent of an older worker's
wages, and expires after 2010.
Kohl also introduced the Health Care and Training
for Older Workers Act, co-sponsored by Senators Cochran (R-MS) and
Durbin (D-IL), which extends COBRA health insurance from the time of
retirement (ages 62 and up) until seniors become eligible for Medicare
at age 65, as well as improves access for seniors to federally-funded
job training programs.
In addition, the bill would establish through the
Department of Labor a clearinghouse of best practices in the private and
public sectors for hiring and retaining older workers, as suggested by
the GAO report. Both bills have received support from the National
Council on Aging, the National Committee to Preserve Social Security and
Medicare, and the National Older Worker Career Center.
The hearing, entitled "The Aging Workforce: What
Does it Mean for Businesses and the Economy?" also featured –
● Marcie Pitt-Catsouphes, Director of the Center
on Aging & Work/Workplace Flexibility, addressed ways in which
businesses can implement flexibility in the workplace in order to
prevent a brain drain as seniors retire.
● Javon Bea, President and CEO of Mercy Health
System, a Wisconsin-based company currently ranked the #1 employer for
older workers by AARP.
● Preston Pulliams, District President of
Portland Community College, discussed supporting older learners who want
to remain in the workforce.
>> The hearing can be viewed in a video
Webcast (Real Video) –
Click Here
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