CHICAGO (March 11, 2005) - The Profit Sharing / 401k Council of America (PSCA) joined the leading retirement savings associations in America and employers of all sizes in urging Congress to follow President Bush’s lead and enact legislation to make the savings and retirement enhancements included in the Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA) permanent. Unless additional legislation is enacted, these improvements will expire at the end of 2011 or earlier and revert to their pre-EGTRRA levels or disappear altogether. EGTRRA includes numerous beneficial retirement provisions such as higher contribution limits for 401(k) and similar plans, a $5,000 catch-up contribution for individuals over age fifty, the Saver’s Credit for low-income workers, improved portability for workers switching employers, and partial relief under the top heavy rules that continue to dampen retirement plan coverage in the small business community. EGTRRA also increases the contribution limits in IRAs. “While EGTRRA is a great boon to the employer provided retirement system,” noted PSCA President David Wray, “employers need the certainty that EGTRRA permanency will provide and baby boomers need to take advantage of the increased savings opportunities well beyond 2011.” The letter follows: EMPLOYER BASED RETIREMENT PLAN COMMUNITY URGES ENACTMENT OF EGTRRA PERMANENCY
March 11, 2005 The undersigned organizations, representing the broad spectrum of employer plan sponsors and retirement plan service providers, commend President Bush for including the permanency of the pension provisions found in Title Six of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) in the Administration’s 2006 Budget. Many critical retirement savings provisions in EGTRRA will expire at the end of 2010 or earlier unless they are made permanent. Title Six of EGTRRA contains numerous improvements to the employer provided retirement plan system that permit American workers to save more in employer plans and to receive higher benefits in retirement. Important provisions in the title also 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. Again, we urge the 109th Congress to follow the President’s lead and quickly enact permanency for the EGTRRA Title Six savings provisions. AMERICAN BANKERS ASSOCIATION
AMERICAN BENEFITS COUNCIL
AMERICAN COUNCIL OF LIFE INSURERS
AMERICAN SOCIETY OF PENSION PROFESSIONALS & ACTUARIES
BUSINESS ROUNDTABLE
COMMITTEE ON INVESTMENT OF EMPLOYEE BENEFIT ASSETS (CIEBA)
EDISON ELECTRIC INSTITUTE
EMPLOYEE-OWNED S-CORPORATIONS OF AMERICA (ESCA)
EMPLOYERS COUNCIL ON FLEXIBLE COMPENSATION
THE ERISA INDUSTRY COMMITTEE
THE ESOP ASSOCIATION
FINANCIAL EXECUTIVES INTERNATIONAL
THE FINANCIAL PLANNING ASSOCIATION
FINANCIAL SERVICES ROUNDTABLE
INVESTMENT COMPANY INSTITUTE
NATIONAL ASSOCIATION OF MANUFACTURERS
NATIONAL TELECOMMUNICATIONS COOPERATIVE ASSOCIATION
PROFIT SHARING / 401k COUNCIL OF AMERICA
SECURITIES INDUSTRY ASSOCIATION
SMALL BUSINESS COUNCIL OF AMERICA
SOCIETY FOR HUMAN RESOURCE MANAGEMENT
U. S. CHAMBER OF COMMERCE A-C Electric Company
AEGON USA
AEPCO, Inc.
AIS Planning
Alford-Jungers Financial & Insurance Services
Atico International, USA
Benchmark Financial, Ltd.
Bidart & Ross, Inc.
Caterpillar Investment Management Ltd.
Cherokee Nation
Cline, Williams, Wright, Johnson & Oldfather, LLP
Continental Materials Corporation
DENSO Manufacturing Tennessee, Inc.
DiMartino Associates, Inc.
Diversified Investment Advisors
The Egging Co.
The Employee Owners of ELS, Inc.
FedEx
Financial Network Investment Corporation
First National Bank of Hutchinson
Flint Ink Corporation
GuidedChoice
Herod Mattis Group
Illinois Housing Development Authority
Integrated Benefits Group
Intel Corporation
ITT Industries, Inc.
Jetrion, LLC
Kennedy/Jenks Consultants, Inc.
Liberty Diversified Industries, Inc.
Mar Sol Benefits Consulting, Inc.
Marian, Inc.
Martin Tractor Company, Inc.
MassMutual Financial Group
McCready and Keene, Inc.
McDonald Financial Group
Menke & Associates, Inc.
Nationwide Financial Services
Olympic Medical Corp.
OppenheimerFunds Inc.
Otto Candies, LLC
The Pension Research Institute
Pietzsch, Bonnett and Womack
Precisia, LLC
The Procter & Gamble Company
Progressive Color Media, LLC
Ratliff CPA
Retirement Plan Strategies, Inc.
Retirement Resources Investment Corporation
Roberts Oxygen Company, Inc.
Sterling Resources, Inc.
Teledyne Isco, Inc.
Transamerica Retirement Services
Trinity Health
The Trust Company of Knoxville
The Vanguard Group, Inc. |
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. |