NEWS RELEASE

February 11, 2010
PR-10/07
For additional information:
Jason Hammersla:
Office: 202-289-6700

Council applauds inclusion of pension funding relief provisions in Senate jobs legislation

WASHINGTON, DC — “Pension funding relief is essential to the preservation of thousands of American jobs, so we are extremely pleased to see the inclusion of these provisions as part of the draft Senate jobs bill unveiled today,” said American Benefits Council President James A. Klein. “We applaud Senate sponsors Max Baucus and Charles Grassley for this contribution to America’s economic recovery.”

Title VII of the Hiring Incentives to Restore Employment (HIRE) Act would provide temporary, targeted funding relief to single-employer and multiemployer pension plans by allowing extended amortization of losses suffered in the recent market decline. “The unprecedented ‘perfect storm’ of depressed financial markets, low interest rates and new pension funding rules has artificially inflated companies’ defined benefit pension obligations,” Klein said. “Millions of dollars, normally earmarked for job creation and capital investment, are now being diverted into already healthy pension funds. This relief would allow employers to maintain their workforces while the economy recovers.”

The Council is concerned, however, that the relief provisions should not be weighed down with excessive requirements that will prevent companies from using it. In that regard, the Council looks forward to discussions with Congress about provisions in the draft bill that have the potential to undermine the potential benefits of the bill. “Employer sponsors of defined benefit plans need long-term predictability of their funding obligations. The Senate jobs bill, which does not cost the American taxpayers any money and in fact raises money, is a good first step toward achieving that goal,” Klein said.

The American Benefits Council has urged Congress to pass pension funding relief immediately, hosting a media briefing on February 4 with Representative Earl Pomeroy. “Congressmen Pomeroy and Pat Tiberi, have shown superlative leadership in sponsoring the Preserve Benefits and Jobs Act, which provides similar relief. We are hopeful that both chambers of Congress will act swiftly to approve these measures,” Klein said.

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.