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OPA News Release: [04/18/2005]
Contact Name:
Kristin Wilson
Phone Number:
202-693-4676
Release Number: 05-679-ATL
U.S. Labor Secretary Elaine L. Chao Visits Charlotte to Highlight
President’s Plan for Retirement Security
Part of President George W. Bush's “60 Stops
in 60 Days” Tour
CHARLOTTE, N.C.—U.S. Labor Secretary Elaine L. Chao addressed
the challenges of retirement security at a meeting today hosted by the
Charlotte Area Society for Human Resource Management. As part of the “60
Stops in 60 Days” tour, Secretary Chao visited Charlotte 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.
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