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NEWS RELEASE
June 3, 2008
Accurate revenue estimates needed for retirement policyWASHINGTON, D.C. — The American Benefits Council and nine other advocacy organizations issued a research report that highlights the need for accurate federal budget scorekeeping estimates for proposed legislative changes affecting retirement savings. The report, Revenue Estimates and Retirement Policy: The Need to Consider Present-Value Estimates of Changes in Tax Policy, concludes that the current federal budget scorekeeping rules-under which revenue effects are reflected on a cash-flow basis using a ten-year budget window-overstate the true costs of retirement savings proposals. These rules result in a distortion of the economic costs of tax deferrals, which are eventually paid, and inhibit the enactment of legislative proposals designed to increase retirement benefits for American workers.Employer-sponsored retirement plans continue to play a crucial role in assuring financial security for the retirement for tens of millions of Americans. The long-term benefits of retirement plan tax incentives should be clarified by evaluating costs on a present-value basis. This would allow policymakers to consider legislative changes that could increase retirement savings for millions of Americans. A number of organizations associated with retirement issues, investments, and governmental plans joined the Council and sponsored the research report. They are the following:
Judy Xanthopoulos and Mary M. Schmitt prepared the report. The report is available on the Council Web site. To arrange an interview with a Council staff member, 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 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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