<nobr>Nov 16, 2004</nobr>

ERIC Cash Balance Alert: Conferees to Consider Sanders Cash Balance Amendment

In an effort to close out the fiscal year, House and Senate Conferees will consider this week the Sanders cash balance amendment to the House Transportation, Treasury General Government appropriations bill. The Sanders amendment would bar the Treasury from utilizing and appropriated funds to "assist in overturn the judicial ruling" of the U. S. District Court for Southern Illinois in Cooper v. IBM. The amendment would appear to significantly tie the hands of Treasury in commenting on the issue of age discrimination relating to cash balance plans. The issue is important since cash balance plans are likely to be on Congress' agenda in 2005.

ERIC strongly opposes the Sanders amendment and has been in discussions with senior appropriations committee staff in an effort to get conferees to reject the House provision on cash balance plans. In addition, and at the suggestion of committee staff, ERIC met today with Office of Management and Budget (OMB) Associate Director for Human Resource Programs Dean Clancy who was asked to weigh in against the Sanders amendment on behalf of the Administration.

Congress is expected to finish its lame duck session by Thursday. Appropriations measures not approved as stand alone bills are expected to either be rolled into an omnibus bill or to become part of a continuing resolution that would continue current appropriation funding until a date certain in 2005. In the latter case, it is our understand that the current Sanders-Harkin provision barring Treasury from issuing cash balance regulations would continue in effect until the expiration of the continuing resolution.

Senate Conferees include Senators
Ted Stevens (R-AK), Chair
Richard Shelby (R-AL)
Robert Byrd (D-WV), Rnk. Mem.
Patty Murray (D-WA)

For further information contact Mark Ugoretz, President (mugoretz@eric.org)

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