U.S. Chamber Calls for Cautious Reform in Pension Debate

WASHINGTON, D.C. – The United States Chamber of Commerce today urged policymakers and legislators to exercise caution as they tackle pension reform this year and into the future, warning that there is no quick-fix to ensuring the stability of a private retirement plan system that millions of Americans rely on.

"Pension issues are complex and certainly need to be addressed, but we must realize that time is needed to devise and implement the right solutions," said Randel Johnson, Chamber vice president for labor, immigration and employee benefits. "Rushing to reform without carefully considering the impact those reforms will have on future generations of Americans is a gamble we cannot afford to take."

The comments followed an appearance at the Chamber by Bradley Belt, executive director of the Pension Benefit Guaranty Corporation (PBGC), who discussed concern over pension funding, particularly in the wake of recent plan terminations.

In an era marked by a dramatic increase in life expectancies, it is more important than ever to encourage participation in the employer-provided retirement plan system. Thus, policymakers must avoid hasty changes to a system of rules that took more than three decades to formulate.

Recent claims that the PBGC has mishandled funding issues surrounding pension plans ignore the group's past success in dealing with such issues and are mistakenly shifting the focus away from the sustainability of pensions now and in the future, according to the Chamber.

The Chamber is committed to the preservation of all employer-provided retirement plans, that in addition to private pensions, represent the most important source of income after Social Security for millions of Americans, and is working with all stakeholders to ensure that preservation. Belt's appearance came on the heels of another Chamber-sponsored event on pension reform September 14, which featured Rep. John Boehner (R-OH-8), Chairman of the House Education and Workforce Committee.

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

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