NEWS RELEASE

June 24, 2010
PR-10/24
For additional information:
Jason Hammersla
202-289-6700

Council applauds passage of pension funding relief; long-term solutions critical for retirement security

WASHINGTON, DC — “Congress provided a boost of economic stimulus today, when it passed critical pension funding relief as part of the ‘doc fix’ legislation,” said Council President James A. Klein upon the House of Representatives’ approval of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (H.R. 3962). “These relief provisions, included as a revenue offset for the Medicare elements, will help many large American employers manage artificially inflated pension obligations and reduce layoffs,” Klein said.

Specifically, the measure will help save jobs across the country by allowing companies more time to repay the huge losses brought about by a “perfect storm” of economic factors, including depressed financial markets, low interest rates and the 2006 pension funding rules. “This legislation will allow employers to responsibly fund their retirement plans while also driving economic growth,” Klein said.

“We applaud the efforts of House and Senate lawmakers, particularly those who have worked on a bipartisan basis to champion this important relief throughout the legislative process. This kind of constructive, collaborative approach will be essential for addressing future retirement security challenges,” Klein said.

“More broadly, Congress will soon have to address the volatility and unpredictability now inherent in funding traditional defined benefit retirement plans. The current funding regime should be improved to encourage employer sponsorship of retirement plans, ensuring long-term financial security for employers and employees,” Klein said. “Today’s enactment of funding relief is a step in the right direction.”

To arrange an interview with Klein or other Council staff on pension funding matters, please contact Jason Hammersla, Council director of communications, 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.