TAX PROPOSALS AFFECTING PRIVATE

PENSION PLANS

HEARINGS

BEFORE THE

COMMITTEE ON WAYS AND MEANS
HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

SECOND SESSION

ON

TAX PROPOSALS AFFECTING PRIVATE

PENSION PLANS

MAY 8, 9, 10, 11, 12, 15, AND 16, 1972

Part 1 of 3 Parts
(May 8 and 9, 1972)

Printed for the use of the Committee on Ways and Means

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1972

78-2020

52 451

XL1
01/94 53-005-00

1026 +

COMMITTEE ON WAYS AND MEANS

WILBUR D. MILLS, Arkansas, Chairman AL ULLMAN, Oregon

JOHN W. BYRNES, Wisconsin JAMES A. BURKE, Massachusetts

JACKSON E. BETTS, Ohio MARTHA W. GRIFFITHS, Michigan

HERMAN T. SCHNEEBELI, Pennsylvania DAN ROSTENKOWSKI, Illinois

HAROLD R. COLLIER, Illinois PHIL M. LANDRUM, Georgia

JOEL T. BROYHILL, Virginia CHARLES A. VANIK, Ohio

BARBER B. CONABLE, JR., New York RICHARD H. FULTON, Tennessee

CHARLES E. CHAMBERLAIN, Michigan OMAR BURLESON, Texas

JERRY L. PETTIS, California JAMES C. CORMAN, California

JOHN J. DUNCAN, Tennessee
WILLIAM J. GREEN, Pennsylvania

DONALD G. BROTZMAN, Colorado
SAM M. GIBBONS, Florida
HUGH L. CAREY, New York
JOE D. WAGGONNER, JR., Louisiana
JOSEPH E. KARTH, Minnesota

JOHN M. MARTIN, Jr., Chief Counsel

J. P. BAKER, Assistant Chief Counsel
RICHARD C. WILBUR, Minority Counsel

(II)

CONTENTS

Page

1

3

Press release dated Thursday, April 13, 1972, announcing public hearings

on administration tax proposal affecting private pension plans. Committee print containing message from the President, letter of trans

mittal from the Treasury Department, text of the bill, and administration's explanation (H.R. 12272)-

Government Witnesses
Department of the Treasury:

Hon. Edwin S. Cohen, Assistant Secretary for Tax Policy -
Hon. Joel Segall, Deputy Assistant Secretary-
John E. Chapoton, tax legislative counsel.
Ronald B. Gold, financial economist ---

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70

70 70

569

574 578

326

293 293 293

229

241

401 401 401

Public Witnesses
Ad Hoc Corporate Pension Fund Committee:

John A. Cardon, Washington, D.C...
Marc M. Twinney, Jr., actuary and pension manager, Ford Motor

Co...

Kenneth L. Houck, assistant general counsel, Bethlehem Steel Corp. American Association of Retired Persons, and National Retired Teachers

Association, Bernard E. Nash, executive director, presented by Cyril F.

Brickfield, legislative counsel.
American Bankers Association:

John M. Cookenbach, president, trust division.
William F. Lackman, chairman, committee on employees trusts.-

Robert L. Bevan, assistant Federal legislative counsel.
American Bar Association:

Mac Asbill, Jr., chairman, section of taxation..
Hon. Sheldon S. Cohen, chairman, special committee on retirement

benefits.
American Federation of Labor-Congress of Industrial Organizations:

Andrew J. Biemiller, director, department of legislation.
Bert Seidman, director, department of social security

Arnold Cantor, economist, research department.
American Institute of Certified Public Accountants, Robert G. Skinner,

chairman, division of Federal taxation --
American Telephone & Telegraph Co., Stanley L. King, Jr., assistant vice

president, human resources.
Ammond, Harold J., national director, Political Action Committee for

Engineers and Scientists..
Anderson, Hon. John B., a Representative in Congress from the State of

Illinois
Asbill, Mac, chairman, section of taxation, American Bar Association..
Association for Advanced Life Underwriting, Marshall I. Wolper, president.
Augenblick, Robert L., president, Investment Co. Institute.
Bangert & Co., San Francisco, Calif., Louis 0. Kelso, legal counsel..
Barberg, W. Warren, chairman, National Association of Life Underwriters.
Baskin, Charles G., secretary-treasurer, Golf Course Superintendents

Association of America.
Bassett, Preston C., director, vice president, and actuary, Towers, Perrin,

Forster & Crosby ---
Beidler, Jack, legislative director, United Auto Workers of America --
Bevan, Robert L., assistant Federal legislative counsel, American Bankers
Association..

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615

112 229 267 604 647 267

350

425 507

293