Once Republicans take control of the Senate next year, Utah’sOrrin Hatch is expected to become chairman of the FinanceCommittee, the powerful arm that oversees retirement policy in theSenate.

Chances are that will have real consequences for the retirementindustry.

Hatch has been a leading voice on retirement reform in both thepublic and private sectors. Last year, he unveiled his SecureAnnuities for Employee Retirement Act.

The SAFE Act champions the extension of open multiple employerplans to small businesses in the private sector, and suggestsunderfunded public pensions purchase annual annuities to guarantyfuture benefits, among other things.

BenefitsPro asked Hatch about the prospects for his proposals tomove forward and other items on the eve of the election.

1. Would a Republican victory in the Senate acceleratediscussion on retirement reform? Or would it usher in a "smallgovernment," hands-off temperament, reflecting the moreconservative stance seen in the House?

Regardless of the outcome of the election, the Secure Annuitiesfor Employee (SAFE) Retirement Act (S. 1270) will be a toplegislative priority. Retirement income is a major concernfor the middle class and the challenge of providing lifetime incomehas never been greater. The SAFE Retirement Act's Starter 401(k)will encourage employers that don't have plans to set them up. Andmy public pension reform proposal, which was given the top grade inthe country by the Urban Institute, is the only reform proposalthat preserves lifetime income.

2. Improving the country's retirementreadiness would seem to be an area Republicans and Democrats couldfind common ground. Yet, in your opening remarks in a recentFinance Committee hearing on retirement, you suggested partisaninterests threaten reform on retirement issues in ways they havenot in the past. What needs to happen to overcome thoseinterests?

Retirement policy has traditionally been anarea where Republicans and Democrats work together to help peopleprepare for a secure retirement. I want it to stay that way,and I'll certainly do my part to make sure that happens. Hopefully,once the election is over, slogans like "upside down taxincentives," "pension stripping" and "the system is rigged" willdisappear and we'll get back to work using facts to help workerssave for retirement.

3. In that hearing, there was substantial dissent on thevery question of whether or not the country is facing a retirementcrisis. In your view, is there a crisis? What happens if we don'tact?

Workers need to save more. How much more they need to save is aquestion that the data must tell us. So first, we need data to tellus the facts that should inform our policy considerations. Weneed to know how much income Americans are projected to need inretirement, how much are they projected to have and, to the extentthere is a shortfall, what policies Congress should enact to helpAmericans close the gap.

4. In the SAFE Act, you propose publicpensions use annual annuity purchases to guarantee income inretirement. With respect to the private sector, Treasury and Laborhave issued guidance favorable to incorporating annuities intarget-date funds in defined contribution plans. Couldannuitization of retirement benefits shift too much risk toinsurance companies? Are you in favor of making this mandatory andwhy?

My proposal does not have a mandate for employers or workers. Rather, my bill promotes the use of fixed income annuitiesfrom state-regulated life insurance companies because lifetimeincome is very important for retirement security. Look, people areliving longer, and that's a good thing. But longer lifespans makelifetime income more expensive for employers to commit to. But the life insurance industry is the one industry designedfrom the ground up to manage longevity risk. So we should see whatthe life insurance industry can do to help us solve the lifetimeincome challenge.

Annuity contracts purchased through a SAFERetirement Plan will be competitively bid on a group contract basisso that the workers receive the highest possible pension inretirement. Government finance officers will be involved in thebidding process to ensure best practices, and life insurancecompanies will be supervised by their respective state insurancedepartments. The life insurance industry is reliably solventbecause state insurance regulations are strict, with stringentreserve requirements and conservative investment standards. Infact, state-licensed life insurance carriers survived the 2008stock market meltdown in far better condition than any other partof the financial sector.

5. Multiemployer defined benefit plans are in prettyrough shape. An alliance of labor and business interests is callingon Congress to give multiemployer plan trustees the power to cutcurrent benefits, to current retirees, by 10 percent. That wouldseem to be a generous concession from participants. Is there thepolitical will in Congress to pass such an aggressivemeasure?

Chairman (Ron) Wyden (D-Oregon) and I both have committed toworking together on multiemployer pension reform. The FinanceCommittee earlier this year laid the groundwork to address thisissue in 2015. It's not possible at this point to predict whatthe reform will entail, or whether or when the reform willoccur.

6. In the private sector, advocates of multiple employerplans say they can deliver defined contribution plan access tosmall businesses. The DOL has resisted industry calls to make"open" multiple employer plans – which allow non-correlatedbusinesses to pool participants – more accessible. What's yourthinking on this?

The SAFE Retirement Act includes a proposal to allow multipleunrelated employers to band together to obtain better 401(k)investment results and simpler, less expensive plan administration.This is an area of bipartisan interest in the Senate and it makes alot of sense.

7. Will you try to push the SAFE Act again even if theGOP fails to take the Senate?

Yes. During my time in the Senate I've sponsored orco-sponsored over 700 bills that have become law, more than anyother current senator. When I introduce legislation, I'm seriousabout enacting that legislation into law.