PSCA LAUDS CHAIRMAN THOMAS FOR ACTION ON EGTRRA PERMANENCY

WASHINGTON (November 10, 2005) - On November 9 the House Ways and Means Committee, under the leadership of Chairman Bill Thomas, approved HR 2830, the Pension Protection Act of 2005. The legislation includes a key provision to make permanent the pension improvements in the Economic Growth and Tax Relief Reconciliation Act of 2001.

The provisions, which will expire at the end of 2010 unless Congress acts, permit American workers to save more in employer plans and to receive higher benefits in retirement. Important provisions in the Act, including the Saver's Credit, target low-income and older workers. These changes are the most recent product of an enormously successful partnership among employers, financial institutions and other service providers, and the government that has resulted in an "ownership society" that permits over eighty million workers to share in America's prosperity while building critical retirement income security. If Title Six of EGTRRA is allowed to sunset, these improvements will be rolled back or eliminated; a key component of the successful ownership society will be restricted; and the retirement security of millions of individuals will be diminished.

"We are extremely grateful for Chairman Thomas' leadership on this critical issue," noted PSCA President David Wray. "Employers crave as much certainty as possible in designing benefit plans. Delaying action on this issue will cause employers to pause in creating new plans as the expiration date looms closer."

PSCA also commends Chairman Thomas for the inclusion of a nondiscrimination and top heavy safe harbor for certain automatic enrollment plan designs. It is a key step forward in the move to encourage adoption of automatic enrollment plans.

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.