PSCA URGES THAT PENSION CONFEREES PRODUCE A CONFERENCE REPORT THAT WOULD MAKE THE SAVINGS AND PENSION PROVISIONS ENACTED BY EGTRRA IN 2001 PERMANENT

WASHINGTON (May 11, 2006) -The Profit Sharing/401(k) Council of America (PSCA) urges that the House and Senate Conferees working to resolve the differences in the House and Senate pension bills produce a conference report that would make the savings and pension provisions enacted in 2001 Tax Act (EGTRRA) permanent.

Unless the 2001 provisions are made permanent, they will suffer the fate of all other tax provisions subject to sunsets - a continuous state of short term extensions, usually effective retroactively to cover a lapsed period. "Simply stated, the communication, cost, and compliance issues for the employer provided retirement system that would result under an "extender state" would be catastrophic to the employer provided retirement system," said PSCA president David Wray. "Existing plan sponsors and their service providers will be hard pressed to continue to offer plans if they are faced with an annual exercise to respond to a lapse of the pension rules that suddenly makes their retirement plan noncompliant with current law."

Full Text of the Letter

The Profit Sharing/401(k) Council of America (PSCA), a national non-profit association of 1,200 companies and their 6 million employees, advocates increased retirement security through profit sharing, 401(k) and related defined contribution programs to federal policymakers and makes practical assistance with profit sharing and 401(k) plan design, administration, investment, compliance and communication available to its members. PSCA, established in 1947, is based on the principle that “defined contribution partnership in the workplace fits today’s reality.” PSCA's services are tailored to meet the needs of both large and small companies with members ranging in size from Fortune 100 firms to small, entrepreneurial businesses.