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NEWS RELEASE
October 15, 2009
Council commends Obama Administration for action to prevent reduction in retirement plan limitsWASHINGTON, D.C. — Today’s announcement by the U.S. Treasury Department and Internal Revenue Service that retirement plan limits will not be affected by the current deflationary period is welcome news for millions of Americans participating in 401(k) plans and other retirement savings programs.“The Council commends the Obama Administration for its recognition of this obscure but far-reaching problem and we are proud to have worked with Treasury and IRS officials to achieve a swift resolution,” said American Benefits Council President James A. Klein. On September 8, 2009, the Council sent a letter to J. Mark Iwry, the Treasury Department’s deputy assistant secretary for tax policy – retirement and health policy, asserting that an inadvertent decrease in the limits “is not in the best interests of our retirement system. The amounts that employees may contribute to voluntary savings plans should not be reduced in the aftermath of the economic downturn. Many employees are in the midst of rebuilding their retirement savings after the unprecedented fall in the capital markets during 2008.” Klein concluded, “401(k) plans are popular and successful vehicles for millions of Americans to prepare for retirement and provide essential investment capital for our recovering economy. It is more important than ever to ensure that 401(k) plans continue to give Americans maximum opportunities for saving.” 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 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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