NEWS RELEASE

February 26, 2009
PR-09/06
For additional information:
Jason Hammersla
202-289-6700

Council examines Obama budget proposals

WASHINGTON, D.C. — The American Benefits Council issued the following statements today regarding President Obama’s Fiscal Year 2010 budget proposals:

Health Care
“The Council and its employer members agree strongly with President Obama: we can no longer afford to put health care reform on hold,” said Council President James A. Klein today. “The President has demonstrated his commitment to health care reform by tackling one of the toughest issues first, the source of revenue that will be necessary to achieve it.”

The president has called for a $634 billion reserve fund to pay for health care initiatives. “Though the specifics of the new reserve fund will need to be very carefully considered, the president’s proposal clearly acknowledges that health care reform will only be possible if we are able to reach common ground on how to finance it,” Klein said.

“We look forward to learning additional details about the president’s plan and will work closely and collaboratively with the Administration, Congress and all major stakeholders to find balanced and appropriate solutions for achieving health care reform,” Klein added.

Retirement Savings
“The president’s proposals also acknowledge the vital importance of retirement security for American workers and for the economy as a whole,” Klein said. “The Council strongly supports improved opportunities for retirement saving. The president’s proposals to expand the Saver’s Credit and facilitate enrollment in workplace plans and IRAs are intended to achieve that goal. As with the president’s health care proposals, the Council looks forward to examining the details of these proposals,” Klein said.

“We hope that the absence of defined benefit funding relief in the president’s fiscal year 2010 budget indicates the administration’s commitment to providing such relief even before the budget is considered by Congress,” Klein said.

“Since the beginning of the economic downturn, the Council has advocated defined benefit funding relief to sustain traditional pension plan sponsorship and aid struggling companies. “Additional relief is still urgently needed to preserve plans, benefits and jobs," Klein said.

“Proposals to improve financial security in retirement should build on and integrate with the existing voluntary employer-sponsored system, a system that already benefits hundreds of millions of Americans. By encouraging more employers to facilitate workplace savings by their employees — and by preserving the defined benefit pension system — we can help achieve retirement income security.

For more information, or to arrange an interview with Council staff, please contact Jason Hammersla, Council director of communications, at jhammersla@abcstaff.org or by phone at 202-289-6700 (office) or (202) 253-5458 (cell).

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.