WASHINGTON -- The Senate has introduced the Worker, Retiree andEmployer Recovery Act of 2008, a new bill aimed at protecting thesavings of America's seniors invested in individual retirementplans with a one-year moratorium on the required minimumdistributions.

Current law requires that seniors who reach the age of 70 1/2must begin to take a required minimum distribution from theirindividual retirement accounts. With the state of the financialmarkets, such mandatory cash-outs could result in a loss ofthousands of dollars for up to 400,000 retirees in Maryland who areover age 70 1/2 , according to Sen. Benjamin L. Cardin (D-Md.), oneof the sponsors of the bill (S. 3361).

The proposed legislation includes changes to pensionrequirements for businesses, as well as provisions included in thePension Protection Technical Correction Act of 2008, originallypassed by the Senate in December 2007 and the House in March andJuly of this year. The bipartisan package also extends for one yearbusiness-tax relief that was included in the first economicstimulus package, and allows companies to write off a greaterpercentage of their investments in business assets to free up cashfor payroll and other expenses.

The legislation was introduced by Finance Committee Chairman MaxBaucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa), SenateHelp Committee Chairman Edward Kennedy (D-Mass.) and Ranking MemberMike Enzi (R-Wyo.).