<nobr>Jul 29, 2009</nobr>

ERIC Urges Congress to Approve Additional Pension Funding Relief

Washington, D.C. -- ERIC along with 35 other trade associations and interest groups today sent a letter to all Members of Congress as well as the Departments of Labor and Treasury regarding the need for additional and immediate funding relief for defined benefit pension plans.

The letter thanks Congress for providing relief in the Worker, Retiree, and Employer Recovery Act of 2008, but warned that, because of the ongoing financial crisis, further relief is needed to encourage economic recovery and reinvestment, and to protect retirement security.

The group urges Congress to "enact legislation this year that would ensure that pension contributions are not out of proportion to those required before the market downturn and that benefit restrictions are not allowed to go into place simply because of the recession and sudden market downturn."

"Without further legislative action, unexpected funding requirements will continue to require many employers to lay off workers, close plants, and postpone investments in order to fund their pension plans, which are long-term obligations," the letter maintains.

Moreover, the letter explains that legislative action is needed immediately as organizations are making these decisions right now, and urges "Congress to move swiftly to adopt follow-up, temporary provisions that would ease cash flow constraints and make contributions more predictable and manageable."

"We believe that relatively modest temporary changes can provide greater stability and improved chances of economic recovery for many companies, nonprofits, and charitable organizations," the letter states.

A link to the letter appears below.

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For more information:
Ted Godbout
Manager, Communications
The ERISA Industry Committee
1400 L Street, NW, Suite 350
Washington, DC 20005
Phone: (202) 789-1400
Fax: (202) 789-1120
tgodbout@eric.org
www.eric.org

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The ERISA Industry Committee (ERIC) is a non-profit association committed to representing the advancement of the employee retirement, health, and compensation plans of America's largest employers. ERIC's members provide benchmark retirement, health care coverage, compensation, and other economic security benefits directly to tens of millions of active and retired workers and their families. ERIC has a strong interest in proposals affecting its members' ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.

Text Files:

Pension Funding Relief Letter (07-29-09)

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