John Gomperts, president of Civic Ventures, with Sen. Kohl

Excerpts from the remarks of Sen. Herb Kohl, D.-Wisc., at the July 11 briefing, "Deferring Retirement: How Baby Boomers are Inventing a New Phase of Work…and How Policymakers should Respond":

"It really is a pleasure for me to be here with you today. I expect that our discussion will prove to be interesting and spirited, on the very important question of how baby boomers are inventing a new phase of work and how we as policy makers need to respond.

"New challenges as well as new opportunities await us as our aging population is expected to double in the very next decade. As baby boomers begin to retire it has been estimated that businesses will face a big shortage – as much as 6 million workers by 2012, and by 2030 businesses will face an even more severe shortage, estimated to be 35 million workers.

"So the retirement of the baby boom generation threatens to limit the potential of our economy. And we need to respond.

Our challenge is to encourage our most experienced Americans, the baby boomers, as they retire to work longer. The panelists of today's round table will share their recommendations on how this can be done and specifically how we can make the idea of an extended career – a second career – or volunteer service attractive to all of our older Americans.

"The good news is that according to a recent survey 80% of boomers fully expect to work past traditional retirement age. And that's a very, very good thing. So we must provide support to them as they choose to continue to work during what is the second act of their careers and their lives, whether they do so for the physical and mental benefits, for additional income to help stretch their retirement savings, or simply because – and very importantly – they want to remain active and contributing members of our society.

"I have introduced two bills recently to deal with this issue. The first bill will create a tax credit for businesses that employ older workers in flexible work programs without a loss of health or pension benefits.

"The second bill I've introduced would extend COBRA health coverage for older workers until they are eligible for Medicare. It will also improve their access to federal job-training programs and establish a national clearinghouse of best practices for hiring and retaining older workers.

"These pieces of legislation are directly in line with policies that our first panelist, Marc Freedman has recommended in his latest book, and they will provide support for those who want to stay engaged and remain productive members of our workforce past their traditional retirement age.

We also welcome our moderator, Deborah Russell, as well as the other panelists, Phyllis Segal and Jeri Sedlar..We thank you all for being here."

Older Worker Opportunity Act of 2007 (S.709)

Tax Credit for Employing Older Workers in Flexible Work Programs

Tax credit for employers that employ workers age 62+ in flexible work programs. The credit equals 25% of the worker’s wages, and expires after 2010.

Employers must (1) provide a qualified pension plan and (2) provide health insurance coverage and pay at least 60% of cost.

A “flexible work program” provides a full-or part-time flexible work schedule and full pension and health care benefits.

This arrangement must be available to an older worker for at least one year and must be widely available to rank and file employees.

Health Care and Training for Older Workers Act (S.708)

1. Extended COBRA Coverage for Older Workers.

If worker age 62+ would lose group health coverage when phasing down their work, the bill provides COBRA continuation coverage for 36 months - bridging the gap to Medicare eligibility at age 65. Under current law, this coverage would be available for only 18 mo. As under current law, the bill also plans to charge a premium of up to 102 % of the plan’s premium.

2. Improved Access to Job Training Programs

The Workforce Investment Act (WIA) provides funding for training all adults. However, because WIA measures effectiveness in part by the change in earnings, older workers - who tend to seek part-time work and earn less when they get new jobs - face barriers to enrollment. The bill corrects the earnings performance measures to provide equal access to older workers, and requires states to report the performance and participation of older workers.

3. Clearinghouse of Best Practices for Hiring and Retaining Older Workers.

The bill requires the Dept. of Labor to establish a clearinghouse of best practices in the private and public sectors for hiring and retaining older workers. Within 6 months, DOL must identify best practices and make the information publicly available through the Internet. DOL must update the information annually.