The Honorable George Miller
Chairman
House Education& Labor Committee
Washington, D.C. 20515

The Honorable John Kline
Ranking Member
House Education & Labor Committee
Washington, D.C. 20515

Dear Chairman Miller and Representative Kline:

The economic crisis continues to have a dramatic impact on the stability of defined benefit pension plans and the capacity of plan sponsors and the economy to absorb the greatly increased pension contributions required under the new funding rules. As a result, we urge you to adopt prudent, temporary pension funding changes that address these concerns and provide greater stability to both participants and defined benefit pension plans.

Pension plan obligations that come due many years in the future must be funded in a timely manner, but the recent asset losses should be prudently replenished as current economic conditions improve. We remain concerned that failure to provide temporary relief may have a negative impact on workers, retirees, employers, and the defined benefit pension system. Failure to act may result in more defined benefit pension plans being frozen, worker and retiree benefits being limited or reduced, and employers having to make large contributions to meet accelerated funding targets. This comes at precisely the time our nation has an ongoing need to ensure that resources are devoted to job retention, job creation, and economic growth.

We commend you on your leadership in dealing with the economic crisis and urge you to continue your efforts to improve the country’s economic outlook. Our organizations are committed to promoting long-term financial and retirement security. Workers should be provided with financial incentives to save, should have access to effective retirement plans, and should be able to keep working and contributing to society regardless of age. Working together, we can better ensure the financial security of Americans of all ages.

Sincerely,

AARP
Business Roundtable
National Federation of Independent Business
Service Employees International Union

CC: Senators Baucus and Grassley, Senate Finance Committee
Senators Harkin and Enzi, Senate HELP Committee
Representatives Rangel and Camp, House Ways & Means Committee