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OPA News Release: [04/11/2005]
Contact Name:
Kristin Wilson
Phone Number: 202-693-4676
Release Number: 05-626-CHI
U.S. Labor Secretary Elaine L. Chao Visits Cincinnati to Highlight
President’s Plan for Retirement Security
Part of President George W. Bush's “60 Stops
in 60 Days” Tour
CINCINNATIU.S. Labor Secretary Elaine L. Chao addressed
the challenges of retirement security at a meeting today hosted by the
Greater Cincinnati Human Resources Association. As part of the “60 Stops
in 60 Days” tour,
Secretary Chao visited Cincinnati 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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