News You Can Use: Paid-leave legislation introduced in House

Designed to build upon FMLA, four Democratic Reps. Pete Stark (Calif.), George Miller (Calif.), Lynn Woolsey (Calif.) and Carolyn Maloney (N.Y.) last week introduced the Family Leave Insurance Act of 2009, which would provide 12 weeks of paid benefits to workers who need to take time off to care for an ill family member, a new child, or because of their own illness.

“Millions of American workers are all too often put in the position of choosing between getting paid and dealing with an illness or welcoming a new child to the family. Americans shouldn’t have to make that choice," Miller said. "Family-friendly policies like guaranteed paid leave not only help parents balance work and family, but also improve employers’ bottom lines. When workers can take advantage of these family-friendly policies, their employers benefit from increased recruitment and retention rates, decreased absenteeism and improved productivity.”

Maloney added: “There couldn’t be a worse time than during an economic downturn to ask parents to choose between a paycheck and their new child or sick family member. Tough times call for strong supports for working families, like paid family and medical leave."

The legislation will:
* Provide all workers with 12 weeks of paid leave over a 12-month period to care for a new child, provide for an ill family member, treat their own illness, care for a wounded veteran, or deal with the deployment of a family member.
* Provide these benefits through a new trust fund that is financed equally by employers and employees, who will each contribute 0.2% of the employee’s pay (for the average worker, less than $7 a month, sponsors estimate).
* Progressively tier the benefits so that a low-wage worker (earning less than $30,000) will receive full or near full salary replacement, middle income workers ($30,000- $60,000) receive 55% wage replacement, and higher earners (over $60,000) receive 40-45%, with the benefit capped at approximately $800 per week.
* Administer the program through the Department of Labor which will contract with states to administer the program.
* Allow states and businesses with equivalent or better benefits to opt-out of the program.

Click here to view a complete summary of the bill and bill text, then comment and let me know your thoughts on the legislation -- Bravo! or Boo!

News You Can't Use: EBRI turns 30

The Employee Benefit Research Institute is all too modest. Not wanting to toot their own horn, we'll do it for them! This week, EBRI, dedicated to the development of sound employee benefit programs and public policy through nonpartisan research and education, celebrated its 30th anniversary.

Although you'll find only a brief mention of it on the group's Web site, EBRI celebrated in style with a Washington, D.C. reception and tribute program that featured the likes of Rep. George Miller (D-Calif.), who called the group "one of the most valuable resources we have to help us understand what is happening" in employee benefits. Sen. Charles Grassley (R-Iowa) said EBRI has "won respect among members on both sides of the aisle."

EBN congratulates EBRI and its president and CEO Dallas Salisbury on this milestone and wishes the organization continued success in the future.

News You Can Use: Miller fights back

Rep. George Miller (D-Calif.), fighting back against what he calls "an active campaign that is blatantly misrepresenting Democratic efforts to preserve and strengthen Americans’ retirement security," on Friday issued a press release to tell his side of the story.

Despite news reports to the contrary, "I do not support ‘abolishing’ 401(k)s, moving these plans, or changing their tax status, plain and simple,” Miller said. Rather, he outlined five points to make 401(k)s more accessible and profitable for workers.

The December EBN outlines the controversial proposal that emerged at a hearing Miller last month, and the January will explore who proposed what when, and where the issue stands now.