May 13, 2020
TO THE MEMBERS OF THE UNITED STATES CONGRESS:
The undersigned organizations and companies that sponsor and service defined
benefit plans that cover millions of workers and retiree s across the country thank you for
your work to help plan sponsors and participants in passing the "Coronavirus Aid, Relief,
and Economic Security (CARES) Act." Specifically, we appreciate the delay of minimum
contributions until 2021 and the temporary rel axation of benefit restriction status. These
provisions are an appreciated first step. However, more action is needed.
Employers that sponsor single -employer defined benefit plans are experiencing a
particularly unexpected financial strain caused by the C OVID -19 pandemic. The recent drop
in interest rates combined with declining asset values because of market conditions created
an unanticipated increase in pension contributions. Many employers are experiencing a
downturn in normal business operations and c ash flows. As employers emerge from this
economic crisis, many will need money in the near term to re -open closed businesses, bring
back furloughed workers, and provide immediate benefits such as health care and paid
Employers are committed to thei r defined benefit plans. However, these are long -
term obligations that can be funded over time. As such, we urge Congress to move forward
on relief that addresses both short -term and long -term needs of plan sponsors of single -
employer defined benefit plans so that they can provide for their employees as they return
to work and in the future. This help can be provided without disruption to the Pension
Benefit Guaranty Corporation (PBGC). The PBGC’s single employer program is robust with
a sizeable surplus an d strengthening employers’ ability to remain in that program further
supports the PBGC.
Thank you in advance for your support. We look forward to working with you and
your staff to advance legislation that would assist all employers, workers, and retirees who
have a single -employer defined benefit plan. Please do not hesitate to contact any of the
listed signatories with questions or to discuss further.
Ace Glass Incorporated
Aerospace Industries Association
Alight Solutions LLC
American Ai rlines
American Benefits Council
American Chemistry Council
American Forest & Paper Association
American Institute of Chemical Engineers
Associated Benefits Corporation
Bacardi U.S.A., Inc.
The Business Council
Cleveland -Cliffs Inc.
Committee on Investments of Employee Benefit Assets
Cox Enterprises, Inc.
CSAA Insurance Group
Dairy Farmers of America, Inc.
Deere & Company
Dominion Energy, Inc.
Distilled Spirits Council of the United States
ECR International, Inc.
Edison Electric Institute
Eli Lilly and Company
The ERISA Industry Committee
Ernst & Young, LLP
FCA US LLC
Financial Executive International
Finch Paper LLC
General Dynamics Corporation
Guard Publishing Company
Guthrie Cortland Medical Center
Hallmark Cards Inc.
He nniges Automotive
John Wood Group PLC
Kinder Morgan, Inc.
King Industries, Inc.
The Kroger Co.
Lockheed Martin Corporation
Lockton Retirement Services
Los Angeles Philharmonic Association
Marsh & McLenn an Companies, Inc.
Maxar Technologies Inc.
Metropolitan Opera Association, Inc.
Michigan Education Association
Nathan Littaver Hospital and Nursing Home
National Association of Insurance and Financial Advisors
National Association of Manufacturers
National Mining Association
The New Jewish Home
Paul Hastings LLP
Principal Financi al Group
Quinn Emanuel Urquhart & Sullivan, LLP
Red Wing Shoe Company
Resolute Forest Products
Salt River Project
Samaritan Health Services
Southern Minnesota Beet Sugar Cooperative
Spring Consulting Group, LLC, an Alera Group Company
Tamarack Management, Inc.
Timber Operators Council Retirement Plan and Trust
University Hospitals Health System Pension Plan
U.S. Chamber of Commerce
Volvo Group North America
WEA Staff Retirement Plan
Willis Towers Watson