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NEW “COMPOSITE” RETIREMENT PLAN CONCEPT WILL STRENGTHEN RETIRMENT BENEFITS FOR WORKERS BY MAKING MULTI-EMPLOYER PLANS SUSTAINABLE

New House Education and the Workforce Committee Composite Retirement Plan Concept Will Provoke Vital Debate on the Best Way to Protect Workers, Retirees and Employers

The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement today in response to the House Education and the Workforce Committee’s newly released composite retirement plan concept:

“The fact this committee has released its concept for how firms may adopt “composite” retirement plans will provoke an important and necessary debate in Congress about the best way to enhance retirement security well into the future.  Composite plans better allocate risk while ensuring the plans can pay the promised benefit levels for all retirees.  Allowing firms and their workers to voluntarily adopt similar plans will give firms that may be hesitant to assume the kind of liabilities associated with defined benefit plans another reason to participate in multi-employer retirement plans.  This will not only strengthen retirement benefits for countless workers, it will also reduce the reliance on the Pension Benefit Guarantee Corporation to buttress troubled plans.

“Moving forward, the Associated General Contractors of America is committed to working with Chairman Kline and others in Congress to move the debate from concept to completed legislation as quickly as possible this calendar year.”