September 11, 1991
TO: PENSION MEMBERS NO. 33-91
RE: INSTITUTE TESTIFIES BEFORE ERISA ADVISORY COUNCIL
__________________________________________________________
The Institute presented testimony today before the ERISA
Advisory Council Work Group on Small Business Retirement Plans.
The Work Group is seeking to promote increased retirement plan
coverage and benefit security for employees of small businesses.
In its written and oral statements, the Institute noted the
trend in the pension market from defined benefit to defined
contribution plans. Since small businesses are particularly
receptive to simple defined contribution plans, the Institute
urged the expansion and enhancement of the salary reduction SEP
arrangement. In particular, the Institute supported legislation
to make such arrangements available to employers with 100 or
fewer employees and to provide a non-discrimination "safe-harbor"
in the form of mandatory employer provided matching
contributions. Such matching contributions reward employees who
participate in the program and also provide an incentive for
employees to save for their retirement.
A copy of the Institute's testimony is attached. We will
keep you informed of developments.
W. Richard Mason
Assistant Counsel - Pension
Attachment