<nobr>Nov 8, 2007</nobr>

ERIC Presents New Benefits Platform for Life Security to Congress

Calls for New Way of Thinking on How Life Security Benefits Are Delivered to Americans

Washington, D.C. -- Michael Stapley, President and CEO of Deseret Mutual, November 8 appeared before the House Education and Workforce Subcommittee on Health, Education, Labor and Pensions to present ERIC's bold New Benefit Platform for Life Security to Congress.

Stapley, a member of ERIC's Executive Committee and Chairman of the ERIC Task Force that developed the New Benefit Platform, called for "a new and forward thinking idea about the way we deliver life security benefits to all Americans."

The New Benefit Platform proposes a new structure for providing retirement and health security benefits through independent Benefit Administrators who would compete with each other based on quality, use of information technology, plan design and cost. Each Benefit Administrator would be required to offer plans for a core set of "lifetime security" benefits -- health, retirement and short-term savings.

ERIC's New Benefit Platform emerges as an increasing number of Americans will enter their retirement with not only insufficient assets and financial security for everyday living expenses but also health care coverage. Americans identify health care as their top domestic concern, and ERIC's New Benefit Platform breaks down the traditional "silos" that have limited individuals from securing their retirement and health needs.

"Because the benefit security needs of all Americans is a troubling issue of increasing importance to employers and to society as a whole, we created a design that took the best of the current system and developed an entirely new platform that would maximize the opportunity for life security for all Americans," Stapley told Members of Congress.

Stapley also said that U.S. employers that provide retirement, medical and similar life security benefits are under stress. "In addition to increased national and global competition, U.S. employers face complex, inflexible, and often contradictory rules as well as exposure to litigation that has increased over time. In many cases, the administration of retirement, health, and other benefits has itself become a major enterprise within companies that often diverts their focus from competitive business challenges."

Stapley testified that, "We recognize that our proposal is controversial and exceeds the breadth of proposals that would simply create additional burdens or build upon components of the current system. ERIC's proposal is designed to spark new thinking about replacing such limiting silos with more creative options. It permits us all to do what Americans do best: create and innovate."

"This is an urgent debate," Stapley said. "The life security of millions of Americans and the vitality of many American businesses depends on the outcome."

###

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
E-mail: tgodbout@eric.org
www.eric.org





Text Files:

ERIC New Benefit Platform Testimony

Back to Previous Page