House Democrats on July 26 announced their AmeriSave retirement savings reform proposal, a plan that does not address Social Security but does encourage savings in IRAs, 401(k)s and similar plans.

The plan would provide tax credits to employers to encourage them to offer retirement savings plans, as well as a one-time government match of as much as $1,000 to qualifying individuals who contribute to the plans. The proposal would also tighten private sector pension rules, making it harder for companies to dump their pension responsibilities onto the federal government during bankruptcy proceedings, and make other changes to retirement savings plans, such as making 401(k) enrollment automatic.

Democrats say the proposal - which is expected to cost $75 billion over 10 years - would be financed by eliminating tax breaks that encourage companies to move their operations outside the country.

The plan is intended to take some of the steam out of Republican efforts to push a package that addresses Social Security, pensions and retirement savings through the House in September. Democrats continue to insist that they will not offer a Social Security plan until President Bush takes personal investment accounts off the table.