U.S. Chamber Launches Coalition to Assure Measured Approach to Post

WASHINGTON, D.C. — The United States Chamber of Commerce today launched a coalition with other leading business and employee-benefit groups to fight for a measured approach to possible retirement system overhaul and regulatory changes spurred by the Enron financial debacle.

"What happened at Enron was a disgrace and the guilty should be punished and any necessary reforms adopted," said Kathleen Havey, U.S. Chamber director of pension policy and a leader of the new Coalition on Employee Retirement Benefits. "But Congress needs to carefully review the facts before taking drastic measures that would punish millions of businesses and workers for the actions of one company."

In a letter to members of Congress, the coalition called for a thorough review of the Enron case but warned against hasty changes to retirement and investment plans, as over-regulation could limit employees' options and cause employers — who voluntarily provide retirement benefits to their workers — to stop offering 401(k)s, employee stock ownership plans, and other worker retirement benefits.

"If an independent, non-partisan government review suggests changes that would strengthen investment opportunities for employees — or improve the transparency of financial reporting — the Chamber will be first in line to support such changes," said Havey. "But if there is an election-year rush by politicians to take actions that would jeopardize the 42 million Americans who participate in a 401(k) plan, then we will be the first to oppose such actions."

Employers voluntarily provide retirement benefits to 90 million American workers — over and above their Social Security contributions. Defined-contribution plans, such as 401(k)s, have become the mainstay of the private retirement system. More than 42 million workers participate in 401(k) plans, holding nearly $2 trillion in assets, including substantial investments in company stock.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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02-10