WASHINGTON – Here’s how Maine’s members of Congress were recorded on major roll call votes in the week ending May 16.

HOUSE 401(k) plans

Voting 271 for and 157 against, the House on May 14 passed a bill (HR 1000) providing employees with more leeway to manage defined-contribution pension plans such as 401(k) plans. In part, the post-Enron bill bans companies from requiring employees to invest their pensions in company stock and shortens to three years the time an employee must hold company-issued stock. It permits company-selected specialists such as brokerages to offer portfolio advice.

A yes vote was to pass the bill.

Rep. Tom Allen, D, voted no. Rep. Michael Michaud, D, voted no.

Independent advice

Voting 193 for and 236 against, the House on May 14 defeated a Democratic substitute to HR 1000 (above). It sought to remove GOP language allowing company-picked portfolio advisers to tout stocks in which they have a financial interest, requiring them to be independent. The substitute also sought to require the notification of employees when executives dump company stock and to prevent mandatory conversions from defined-benefit to cash-balance plans (next issue).

A yes vote was to require independent investment advice.

Allen and Michaud voted yes.

Cash-balance plans

Voting 202 for and 226 against, the House on May 14 defeated a bid by Democrats to give workers a choice between remaining in defined-benefit pension plans or switching to cash-balance plans. The underlying bill (HR 1000, above) offers no such choice when companies convert their workforce to cash-balance plans. While a large majority of workers stand to benefit from conversions, many others lose pension value, particularly those nearing their highest-earning years.

Under traditional defined-benefit plans, retirees typically receive a specific sum for life based on factors such as longevity with the company and peak salary. In a typical cash-balance plan, workers contribute a fixed percentage of salary, which draws interest based on fixed or variable rates. Whereas traditional plans are tied to a single company, cash-balance plans are portable from job to job.

A yes vote backed worker choice in pension conversions.

Allen and Michaud voted yes.

SENATE

$350 billion tax cuts

Voting 51 for and 49 against, the Senate on May 19 approved $350 billion in personal and business tax cuts over ten years, sending the package (S 1054) to conference with a House bill that would reduce federal revenue by $550 billion over the same period.

The Senate bill excludes half of stock dividends from taxation this year, 100 percent for the next three years, then restores full taxation beginning in fiscal 2007. The bill levies more than $90 billion in tax increases. For example, it repeals an exclusion from income taxes on the first $80,000 of paychecks received by Americans working overseas, and closes a shelter by which U.S. firms avoid taxation by moving corporate headquarters offshore. It provides $20 billion for states and localities.

The bill lowers personal rates this year in most brackets, raises the child tax credit from $600 to $1,000 per child, reduces the “marriage tax” penalty on certain couples, gives small businesses more liberal write-offs for capital investments and widens eligibility for the 10 percent bracket. Families would immediately receive rebates of the added $400 in child tax credits.

A yes vote was to pass the bill.

Sen. Susan Collins, R, voted yes. Sen. Olympia Snowe, R, voted no.

Social Security v. tax cuts

Voting 44 for and 53 against, the Senate on May 14 rejected a bid by Democrats to put a GOP plan to cuts taxes on dividends on a pay-as-you-go, anti-deficit basis. This occurred during debate on S 1054 (above). Democrats said their amendment would protect Social Security surpluses, while Republicans said economic growth generated by tax cuts would sufficiently bolster Social Security. Although later changed (next issue), the dividend plan at the time of this vote was projected to increase the national debt by at least $81 billion over ten years.

A yes vote backed the amendment.

Collins and Snowe voted no.

Stock dividends

Voting 51 for and 50 against, the Senate on May 15 approved a plan to exclude half of stock dividends from taxes this year, 100 percent between 2004-2006, and then restore the levy beginning in 2007. Vice President Cheney cast the tie-breaking vote during debate on S 1054 (above).

A yes vote backed dividend tax cuts.

Collins voted yes. Snowe voted no.