U.S. Chamber Recommends Incentives for Small Businesses to Fund and Maintain Retirement Plans

WASHINGTON, D.C.—In testimony on behalf of the U.S. Chamber of Commerce today, Jason Speer, vice president and general manager of Quality Float Works, Inc., outlined recommendations for the immediate and long-term funding and maintenance of employee retirement plans.

"In the current economic environment, it is more important than ever that Congress focus on encouraging the implementation and maintenance of retirement plans by small businesses," Speer told the House Committee on Small Business.

"Ensuring adequate retirement security for all Americans means encouraging small businesses to participate in the private retirement system," Speer said. "The Chamber recommends provisions that would incentivize participation."

Speer's testimony laid out the need for immediate and long-term action to give small businesses a voice in developing government policy and to do away with regulations that make funding and maintaining employee retirement plans more difficult.

Key recommendations for the House Small Business Committee include:
• Increase small business representation in key advisory councils such as the

ERISA Advisory Council
• Encourage unlimited pre-funding of defined benefit plans during "good" times so that there
is less strain during the "bad" times
• Elimination of regulations which create administrative complexities and burdens
• Tax distributions at capital gains rates rather than at income tax rates

A complete copy of the testimony is available at: http://www.uschamber.com/issues/testimony/2009/090225retirement.htm

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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