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Release Date: 04/22/2005
Release Number: 05-724-KAN
Contact Name: Gloria Della
Phone Number: 202.693.8664
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KANSAS CITY, Mo. - U.S. Assistant Secretary of Labor Ann L. Combs
addressed the challenges of retirement security at a meeting today in Kansas City, Mo.,
hosted by the Employee Benefits Institute. Like the department's head, U.S. Secretary
of Labor Elaine L. Chao, Combs is participating in the "60 Stops in 60 Days" tour to support
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." |
Assistant Secretary Combs
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. |
"As President Bush has said,
we must act now to ensure that Social Security remains strong for future retirees," said Combs.
"Similarly, we must reform the defined benefit pension system to ensure that promises made to workers
are kept." |
Combs 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. |
Combs 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 and Assistant
Secretary Combs will continue their participation in the "60 Stops in 60 Days" tour through the month
of April as they discuss the Administration's plans to make the retirement of America's workers more
secure. |
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page. |