ERISA Issues Statement on Economy, Protect Employer-Sponsored Benefits

WASHINGTON, April 26 -- The ERISA Industry Committee issued the following statement by President and CEO Annette Guarisco that tax reform can both improve the economy and protect employer-sponsored benefits:

"The ERISA Industry Committee is pleased with President Trump's tax reform framework, which avoids imposing dangerous taxes on employer-sponsored health and retirement benefits.

"As the only national association that advocates exclusively for large employers on health, retirement, and compensation public policies at the state, federal, and local levels, ERIC and its members are extremely concerned about the ability of employers to continue to offer tax-preferred benefits to their workforces which employees greatly value and have contributed to improved retirement savings and a healthier workforce.

"Tax reform should repeal the 40 percent 'Cadillac' excise tax on employer-sponsored health coverage, and should not replace it with a new tax on benefits. Taxing employer-sponsored health insurance will not raise revenue, but instead will force employers to curtail their health benefits in order to avoid the tax.

"While ERIC appreciates the Administration supporting the preservation of the pre-tax treatment of contributions to retirement plans, we are concerned with congressional proposals that call for dramatic changes to the retirement system in America, such as replacing pre-tax contributions with after-tax Roth contributions. A drastic shift to Roth contributions could undermine the entire retirement system in this country and undo the progress that has been made through widely favored pre-tax 401(k) plans.

"Over the last several decades, the federal government has consistently made it more difficult and expensive to operate a retirement plan due to unnecessary and burdensome laws and regulations. Decreasing the incentive to save for retirement would have devastating effects on retirement security, thwarting decades of effort by employers and employees to improve planning, saving, and investing responsibly.

"ERIC thanks President Trump for recognizing the important role of employer-sponsored benefits. We look forward to working with the Administration and Congress to continue to protect these benefits and advancing meaningful tax reform."