March 11, 1996
TO: PENSION COMMITTEE No. 8-96
RE: IMPACT OF TAX REFORM PROPOSALS ON EMPLOYEE BENEFITS
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As discussed at the last Pension Committee meeting, attached is a discussion of various tax
reform proposals and their impact on employee benefits that was published by the Employee Benefit
Research Institute (EBRI). The tax reform debate raises significant issues regarding the use of tax
incentives to encourage retirement savings as compared to the use of the tax code to provide more
general, individual savings incentives. Each tax reform proposal discussed in the EBRI material would
alter the relative tax advantage many employee benefit programs now enjoy, and therefore would affect
the continued formation and maintenance of employee benefit plans and individual participation rates in
those plans.
We will keep you informed of developments.
Russell G. Galer
Assistant Counsel - Pension
Attachment