Text 3130, 85 rader
Skriven 2006-08-17 23:31:40 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (060817) for Thu, 2006 Aug 17
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Fact Sheet: The Pension Protection Act of 2006: Ensuring Greater Retirement
Security for American Workers
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For Immediate Release
Office of the Press Secretary
August 17, 2006

Fact Sheet: The Pension Protection Act of 2006: Ensuring Greater Retirement
Security for American Workers



Today, President Bush Signed The Pension Protection Act Of 2006, The Most
Sweeping Reform Of America's Pension Laws In Over 30 Years. Last year,
President Bush asked Congress to strengthen protections for the pensions
American workers rely on, and Congress responded by passing this bipartisan
bill.
  þ Every American Has An Interest In Fixing The Pension System. The
    Federal government has created an insurance system for businesses
    offering private pensions, and the insurance is funded by premiums
    collected from these employers. When some businesses fail to fund their
    pension plans and are unable to meet obligations to their employees, it
    puts a strain on the entire pension system. If there is not enough
    money in the system to cover all the extra costs, American taxpayers
    could be called on to make up the shortfall.

This Legislation Improves The Pension System And Expands Opportunities To
Build Retirement Nest Eggs

The Pension Protection Act Strengthens The Federal Pension Insurance
System. The legislation:
  þ Requires companies that under-fund their pension plans to pay
    additional premiums;
  þ Extends a requirement that companies that terminate their pensions
    provide extra funding for the pension insurance system;
  þ Requires that companies measure the obligations of their pension plans
    more accurately;
  þ Closes loopholes that allow under-funded plans to skip pension
    payments;
  þ Raises caps on the amount that employers can put into their pension
    plans, so they can add more money during good times and build a cushion
    that can keep their pensions solvent in lean times; and
  þ Prevents companies with under-funded pension plans from digging the
    hole deeper by promising extra benefits to their workers without paying
    for those promises up front.

President Bush Has Sent A Clear Message To Businesses Across America That
They Must Keep Their Promises To Workers. Businesses that offer a private
pension plan to their employees have a duty to set aside enough money now,
so their workers get what they have been promised when they retire.

The Pension Protection Act Also Contains Provisions To Help American
Workers Who Save For Retirement Through Defined Contribution Plans, Like
IRAs And 401(k)s. Defined contribution plans are helping Americans build a
society of ownership and financial independence, and this legislation makes
it easier for workers to participate in these plans. The legislation:
  þ Removes barriers that prevent companies from automatically enrolling
    their employees in defined contribution plans;
  þ Ensures that workers have more information about the performance of
    their accounts;
  þ Provides greater access to professional advice about investing for
    retirement;
  þ Gives workers greater control over how their accounts are invested; and
  þ Makes permanent the higher contribution limits for IRAs and 401(k)s
    that were passed in 2001, enabling more workers to build larger
    retirement nest eggs.

To Ensure A More Secure Retirement For All Americans, We Must Also Prepare
For The Impact Of The Baby Boom Generation's Retirement On Entitlement
Programs Like Social Security And Medicare. Entitlement programs are
projected to grow faster than the economy, faster than the population, and
faster than the rate of inflation. If we fail to act, Social Security,
Medicare, and Medicaid will be almost 60 percent of the entire Federal
budget in the year 2030. President Bush continues to call on Congress to
meet its duty to reform these programs so we can ensure a secure retirement
for all Americans.

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http://www.whitehouse.gov/news/releases/2006/08/20060817.html

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