Washington, D.C. – Business Roundtable President John J. Castellani today issued the following statement in response to the introduction of pension reform legislation by House Education and the Workforce Committee Chairman John Boehner (R-OH):

“Chairman Boehner’s bill is a solid step in the right direction, but measures must not stop there if the goal is to truly improve retirement savings in America. Reforms should help America’s workers – including our member companies’ ten million employees – accurately prepare for safe and secure retirements.

“The Chairman’s legislation is a good start, and provides employers with the necessary flexibility to make long-term decisions based upon their pension contributions that will help them continue to grow and create jobs. In addition, we are pleased that the bill resolves legal uncertainty to ensure that hybrid plans such as cash balance pensions remain a vital part of the pension system.”

In late 2004 Business Roundtable issued a set of guiding principles for reform, urging that reforms to our nation’s pension system:

• Ensure the continued success of the defined benefit pension system;
• Avoid disrupting or undermining the economy;
• Provide predictability in future pension costs;
• Eliminate barriers to pension contributions;
• Preserve long-term outlook on pension plans;
• Provide useful information to participants; and
• Protect pensions from irresponsible employers.

“Business Roundtable believes pension reforms should strengthen our economy and the financial security of retirees, shareholders and providers,” added Castellani. “We thank Chairman Boehner for his proposed legislation and will continue to support Congressional efforts aimed at securing our pension system.”