June 3, 2008

 

U.S. Chamber Says Accurate Budget Estimates Needed for Sound Retirement Policy

WASHINGTON, D.C.-The U.S. Chamber of Commerce, along with the American Society of Pension Professionals & Actuaries, and eight other advocacy organizations issued a research report today that highlights the need for accurate federal budget scorekeeping estimates relating to retirement policy.  The report, Revenue Estimates and Retirement Policy: The Need to Consider Present-Value Estimates of Changes in Tax Policy,  found that the current federal budget scorekeeping rules -under which revenue effects are reflected on a cash-flow basis using a ten year window- overstates the true economic costs of tax deferrals related to retirement savings.
 
"Understanding the true economic impact of pension legislation is critical to ensuring sound retirement policy," said Aliya Wong, Director of Pension Policy at the U.S. Chamber.  "The report is an important tool for explaining this fiscal impact." 
     
As the Baby Boom generation begins to retire, it is increasingly important to ensure the strength of the private retirement plan system. Millions of retired Americans rely on private pensions and employer-sponsored retirement savings as their most important source of income after Social Security.  In an era where life expectancy has increased dramatically, it is more important than ever that policymakers foster the growth of employer-sponsored retirement.

 

"The Chamber believes the long-term benefits of retirement plan tax incentives should be clarified by evaluating costs on a present-value basis," added Wong.  "Congress should take a long hard look at this report. This would allow policymakers to consider legislative changes that could increase retirement savings for millions of Americans."
     
The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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