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NEWS RELEASE
October 29, 2008
Council's 10-point plan aids retirement savings, promotes economic recovery, protects jobsMarket turmoil now straining employer-sponsored pension plans WASHINGTON, D.C. — "The current economic turmoil is wreaking havoc on a number of fronts: the jobs market, the housing market, the financial market. If swift action is not taken, the employer-sponsored retirement system will be the next front in this economic storm," said American Benefits Council President James A. Klein prior to today's hearing on economic recovery by the House of Representatives Ways and Means Committee." To address the challenges faced by American businesses, workers and retirees, the Council has proposed a ten-point plan for urgent consideration by Congress." The Council provided a written statement for the hearing record.The ten-point plan provides concrete recommendations for helping individuals weather the financial storm; for preventing unexpected and unintended pension funding mandates that would cost jobs, impede economic recovery and trigger massive benefit "freezes"; and for encouraging future retirement saving. "The defined benefit pension system, in particular, is under tremendous strain. Market volatility and accelerated funding requirements threaten to create enormous pension obligations — in the hundreds of millions of dollars for some individual plan sponsors — when that money could otherwise be spent on infrastructure and job creation," Klein said. "Without the relief contained in the Council's plan, employers will be compelled by law to restrict benefits and compelled by circumstances to 'freeze' pension plans to mitigate the impact of market conditions. By drawing capital away from investments that will promote economic recovery and job growth, job losses and business contractions will only worsen," Klein said. "Decisive leadership and swift action will be necessary to ensure the continued sponsorship of these plans and avoid additional economic harm," Klein concluded. The Council's 10-point plan and statement for the record are available on the front page of the Council Web site. The Council was also one of 15 trade groups to sign on to a letter to the Ways and Means Committee leaders urging relief for defined benefit plans. To arrange an interview with a member of the Council staff, please contact Jason Hammersla, Council director, communications, at jhammersla@abcstaff.org or by phone at (202) 289-6700.
The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Councils member's represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.
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