To Save, or Not to Save?

This event is co-hosted by AARP, Center on Budget and Policy Priorities, CFED, National Disability Institute, The Retirement Security Project, Sargent Shriver National Center on Poverty Law, and World Institute on Disabilities.

As more and more Americans are expected to save for their own futures, millions of low-income individuals get conflicting messages from their government: Save, and don't save. Over the last decade a consensus has been emerging among researchers, policymakers, and practitioners about the importance of helping low-income persons save and build wealth. Fortunately, many state and federal programs have emerged to do just that. Yet, with limited exceptions, rules for the nation's public assistance programs aimed at this same group of people - Food Stamps, Medicaid, and TANF, for example - send the exact opposite message: Don't save.

In recent years a number of states - including California, Colorado, Illinois, Ohio and Virginia - have exercised their limited authority to reform asset rules for means-tested programs. At the same time, there has been little action at the federal level - until now. Representative Conyers (D-MI) has proposed legislation that would reform asset limits across several major income-support programs including TANF, SSI and food stamps. Senators Chambliss (R-GA) and Harkin (D-IA) have introduced legislation to liberalize the limit as part of the Farm Bill reauthorization. In his budget proposal earlier this year, President Bush signaled support for asset limit reform in the food stamp program by proposing to exclude retirement savings accounts.

With increasing awareness of the need for asset limit reform - and a real vehicle for improvement in the Farm Bill- the time is right to address the mixed message our government is sending to low-income Americans. Removing the penalty to save will enable more individuals to put themselves on a path to financial independence.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Tom Petri (R-WI) and Rep. Earl Pomeroy (D-ND).

Participants

• The Hon. Jim Cooper (D-TN)
  U.S. House of Representatives
  Co-Chair, The Savings and Ownership Caucus
• The Hon. John Conyers (D-MI)
• U.S. House of Representatives
• The Hon. Gwen Moore (D-WI)
  U.S. House of Representatives
• The Hon. Lynn Woolsey (D-CA)
  U.S. House of Representatives
• Steve Mendelsohn
  Senior Policy Analyst for the Law, Health Policy & Disability Center, University of Iowa, College of Law
  National Disability Institute
• Zoe Neuberger
  Senior Policy Analyst
  Center on Budget and Policy Priorities
• Rourke O'Brien
  Policy Analyst
  New America Foundation
• Dory Rand
  Supervising Attorney, Community Investment
  Sargent Shriver National Center on Poverty Law
• Phyllis Stinson
  Director of External Relations
  The Retirement Security Project
• Carol Wayman
  Senior Legislative Director
  Corporation for Enterprise Development
• Berna Brannon
  Congressional Liaison, Asset Building Program
  New America Foundation