|
 Printer-Friendly Version
EBSA News Release: [03/31/2005]
Contact Name:
Kristin Wilson
Phone Number: 202-693-4676
Release Number:
05-555-PHI
U.S. Labor Secretary Elaine L. Chao Visits Pittsburgh to
Highlight President's Plan for Retirement Security
Part of President George W. Bush's "60 Stops in 60
Days" Tour
PITTSBURGH, Pa. - U.S. Labor Secretary Elaine L. Chao addressed
the challenges of retirement security at a meeting today hosted by Pittsburgh
Human Resources Association (PHRA) and the Society for Human Resource
Management (SHRM). As part of the "60 Stops in 60 Days" tour, Secretary Chao
visited Pittsburgh, outlining President Bush's plans to strengthen the
retirement security of America's workers.
"President Bush has made retirement security one of the highest
priorities of his second term. A critical component of his agenda is ensuring
that the defined benefit pension system is viable and that the promises made to
workers enrolled in these plans are kept," said Secretary of Labor Chao. "We
must move ahead with reform of the Social Security system because our
children's retirement security must be protected. We must make Social Security
permanently sound, and not leave the problems the system faces for another
day."
Secretary Chao highlighted the Administration's plans to reform the
single-employer, defined benefit pension system that covers 34 million
Americans and strengthen the Social Security system for future generations
while keeping it sound for today's seniors and those nearing retirement.
Chao noted that the Administration recognizes the government has made
promises through the Social Security system it cannot afford to keep. In 2017,
the government will begin to pay out more in benefits than it collects in
payroll taxes - shortfalls then will grow larger with each year. By 2041, when
today's younger workers begin to retire, the system will be bankrupt.
Chao also stressed that promises made by employers to workers in
single-employer, defined benefit pension plans are not being kept, and that
this system must also be reformed to ensure that these employer-provided
retirement plans are adequately funded.
Social Security and the single-employer, defined benefit pension system
are two essential parts of a sound retirement security system for America's
workforce. Addressing the challenges these systems face as the workforce in the
United States ages will allow older workers greater flexibility and
predictability in planning their careers. This is critical as the demand for
older workers is growing to meet the need for an increasing number of skilled
workers.
Secretary Chao will continue her participation in the "60 Stops in 60
Days" tour through the month of April and discuss the Administration's plans to
make the retirement of America's workers more secure.
# # #
_________________________________________________________________
| 
