<nobr>Nov 13, 2003</nobr>

ERIC Statement on Passage of Harkin Cash Balance Amendment

The ERISA Industry Committee (ERIC) has issued the following statement in response to the passage of an amendment offered by Sen. Tom Harkin (D-IA) in the transportation/Treasury appropriations bill that will prohibit any funds being used to complete action on the IRS's proposed age discrimination regulations affecting hybrid and other pension plans.

“What Congress has done is jeopardize the retirement security of seven million hybrid plan participants in order to accommodate the questionable but vocal complaints of a few. The vast majority of hybrid plan participants appreciate and depend on these plans. When a scalpel would have been appropriate, Congress instead used a chain saw.”

“In offering his amendment, Senator Harkin said that he did not want to hurt cash balance plans. But that is precisely what he did. The current absence of a regulatory framework has exposed employers to misguided lawsuits directly attributable to the regulatory chaos. In the end, it’s the employees who lose at the expense of the trial lawyers.”

To arrange an interview with either Mark Ugoretz, president of ERIC, or Janice Gregory, senior vice president of ERIC, please contact Doug Baj at (202) 789-1400 or dbaj@eric.org.

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