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EBSA News Release: [09/12/2003]
Contact Name: Gloria Della
Phone Number: (202) 693-8666

Assistant Secretary Ann L. Combs Calls for Reforms to Strengthen Workers’ Retirement Security

WASHINGTON—Ann L. Combs, assistant secretary of labor for the Employee Benefits Security Administration (EBSA), today said that the combined efforts of the government and benefit community are essential to the creation of retirement security for Americans. Combs made her remarks in an address to the 56^th annual conference of the Profit Sharing/401(k) Council of America, held in Scottsdale, Ariz.

In her address to 300 senior executives representing companies ranging from Fortune 500 to small businesses, Combs focused on the ways each can help build retirement security for workers in defined contribution plans, such as 401(k) plans.

Combs told the conference, “The 401(k) system is essential to Americans. We are truly a nation of investors. The challenge now before the Administration, the Congress and the industry is to strengthen businesses’ ability to deliver the retirement income and security that workers deserve and depend on, but to do it in such a way that we don’t discourage employers from offering and maintaining plans for their workers.”

To meet this challenge, President Bush has proposed a plan embodied in H.R. 1000, which passed the House with bipartisan support. This legislation would give workers more freedom to diversify investments, provide better information through 401(k) and pension plan statements, and give employees access to professional investment advice.

Combs noted that President Bush has also signed into law two significant tax packages to help working families maximize their retirement security. The first increased 401(k) and IRA contribution limits and introduced catch up contributions for older workers; and the second cut marginal tax rates – letting workers keep a larger portion of their paychecks.

“Our job is to create an environment that encourages employers to offer plans and encourages worker participation,” said Combs. “The employers’ job is to offer employees the chance to save for their retirements and to understand and implement their fiduciary responsibilities.”

To help employers understand those responsibilities, Secretary of Labor Elaine L. Chao has instituted a department-wide program of compliance assistance. This program ensures that employers, plan officials and service providers understand the law by giving them guidance and tools to assist in complying with the law.

A copy of the full speech will be available on EBSA’s website at www.dol.gov/ebsa under Newsroom.

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