NEWS RELEASE

February 1, 2010
PR-10/04
For additional information:
Jason Hammersla:
Office: 202-289-6700

Reaction to Obama Administration budget proposal:

Council commends president’s focus on retirement saving, urges investment in employer-sponsored benefits system

WASHINGTON, DC — “President Obama’s budget proposal acknowledges the important role of retirement savings, not only for Americans’ personal financial security but for our national economic security as well,” American Benefits Council James A. Klein said today upon the release of the administration’s budget for the 2011 fiscal year. “As President Obama and Congress search for ways to encourage and improve retirement savings, we urge them to build on the strengths of the established employer-sponsored system.”

The budget proposals include establishing automatic enrollment in individual retirement accounts, expanding the existing “Saver’s Credit” and enhancing incentives for small employers to start plans. “These initiatives closely follow several of the Council’s Safe and Sound strategic plan policy recommendations for promoting personal financial security in retirement,” Klein said. The administration is also reexamining rules governing 401(k) plans, an effort for which the Council has offered insight and guidance.

“The Council has steadfastly supported workplace and personal savings programs to help Americans achieve retirement security. But efforts to promote broader savings by individuals must not disrupt or discourage sponsorship of plans by employers who offer generous benefits to their workers,” noted Klein.

“As President Obama considers both retirement policy and economic recovery in the coming days, we strongly urge him to address a crisis at the heart of both issues: pension funding relief. Due to the unprecedented intersection of numerous financial factors, many companies are facing artificially inflated pension funding obligations when they should be spending that money on job creation and capital investment. What we are advocating would raise revenue, which would fit nicely in the president’s budget.” 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.