<nobr>May 23, 2005</nobr>
ERIC Releases Consensus Proposals for Pension Funding, PBGC Reform and Hybrid Pension Plans
Please find below ERIC's consensus proposals regarding pension funding, PBGC reform and hybrid pension plans. A copy of the document's Executive Summary (which also is included at the first of the full document) is also attached for your convenience.
The proposals regarding funding of private sector defined benefit plans and regarding the Pension Benefit Guaranty Corporation (PBGC) were developed by ERIC's Pension Funding Task Force, which has been meeting since 2004 to craft a major employer position on these issues. These proposals have been circulated to the membership and the Board of Directors. ERIC expresses its appreciation for the diligence and careful thought that members brought to the many discussions necessary to produce this document.
Consideration of legislation regarding pension funding and PBGC reform is expected to begin in Congress shortly. The House Education and Workforce Committee is expected to be the first to take action.
The proposals regarding hybrid plans were developed by ERIC's Hybrid Plan Working Group and approved by the ERIC membership in 2004. Resolution of issues facing hybrid plans is critical to the future of the defined benefit system. Thus, those proposals are combined with the funding and PBGC proposals in this document. In addition, it is widely anticipated that Rep. John Boehner (R-OH), chairman of the House Education and Workforce Committee, also will combine proposals regarding hybrid plans with the funding and PBGC reform bill he is expected to introduce shortly.
We encourage you to use this document throughout your company and in your own lobbying activities on these issues.
ERIC is widely distributing the document on Capitol Hill and in the press.
For questions, contact:
Janice Gregory, Senior Vice President
Mark Ugoretz, President
ERIC Pension Funding, PBGC & Hybrid Plan Proposal
ERIC Letter to Congress Re: Pension Funding, PBGC & Hybrid Plan Proposal
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