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NEWS RELEASE
January 28, 2010
Council urges bipartisan approach to health care reform, retirement savings, pension funding relief as part of economy, jobs strategyWASHINGTON, DC — “President Obama’s vision for economic recovery, health care reform and retirement security speaks to the essential role employers play as sponsors of health and retirement plans for millions of Americans. Employers want to continue doing our part as the source of health coverage and retirement income. Now its up to the White House and Congress to do their part to pursue sound policy on a bi-partisan basis,” said American Benefits Council President James A. Klein following the president’s speech to the nation. “A lot has been said over the past week about the process the president and Congress will pursue to enact health care legislation. But quite honestly the process is less important than the substance of what is pursued. Whether the strategy is to enact comprehensive or incremental reform we continue to urge Congress to build on the established federal framework that currently allows employers to sponsor generous benefits for over 160 million Americans. To be truly effective, reform must rein in the soaring health care costs that threaten to paralyze our economy,” Klein said. To help encourage the nation’s economic recovery, President Obama announced his “Supporting Middle Class Families” initiative, including a number of retirement savings proposals. His recommendations include establishing automatic enrollment in individual retirement accounts, expanding the existing “Saver’s Credit” and changing rules governing 401(k) plans. “Workforce retirement plans are how America saves. The Council has long championed workplace and personal savings programs that help Americans achieve retirement financial security. But efforts to encourage broader savings by individuals and small businesses should not unintentionally complicate sponsorship of plans by major employers that typically provide the most comprehensive benefits,” noted Klein. “President Obama wisely spoke about the critical need to save current jobs and create new ones. An essential element of his jobs initiative must be enactment of funding relief for defined benefit pension plans,” Klein said. “Due to an unprecedented intersection of a depressed stock market, low interest rates and new pension funding rules, many companies are facing artificially inflated pension funding obligations when they should be spending that money on job creation and capital investment. Enacting pension funding relief would not only save jobs and promote business growth, it’s a net revenue-raiser for the federal government.” The American Benefits Council stands ready to work with the Obama Administration and Congress to help solve the nation’s economic problems. “Widespread personal financial security equates to national financial security,” Klein said. “And personal financial security for both health and retirement protection begins in the workplace. In the year ahead, we urge lawmakers to build on the existing strengths of the employer-sponsored benefits system.”
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 Council’s members 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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