Accurate Revenue Estimates Needed for Retirement Policy.CHICAGO -- The Profit Sharing/401k Council of America (PSCA PSCA Profit Sharing/401(K) Council of America PSCA Philippine School of Culinary Arts PSCA Protein Sequence Comparative Analysis PSCA Parts Stress Count Analysis (British Telecom) ) and nine other advocacy organizations issued a research report that highlights the need for accurate federal budget scorekeeping estimates for proposed legislative changes affecting retirement savings. The report, Revenue Estimates and Retirement Policy: The Need to Consider Present-Value Estimates of Changes in Tax Policy, concludes that the current federal budget scorekeeping rules--under which revenue effects are reflected on a cash-flow basis using a ten-year budget window--overstate the true costs of retirement savings proposals. These rules result in a distortion of the economic costs of tax deferrals tax deferral The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. , which are eventually paid, and inhibit inhibit /in·hib·it/ (in-hib´it) to retard, arrest, or restrain. in·hib·it v. 1. To hold back; restrain. 2. the enactment of legislative proposals designed to increase retirement benefits for American workers. Employer-sponsored retirement plans continue to play a crucial role in assuring financial security for the retirement for tens of millions of Americans. The long-term benefits of retirement plan tax incentives should be clarified by evaluating costs on a present-value basis. This would allow policymakers to consider legislative changes that could increase retirement savings for millions of Americans. A number of organizations associated with retirement issues, investments, and governmental plans joined PSCA and sponsored the research report. They are the following: * American Society of Pension Professionals & Actuaries * Profit Sharing/401k Council of America * U.S. Chamber of Commerce The U.S. Chamber of Commerce is the world's largest not-for-profit federation of businesses, representing more than 3 million businesses and organizations in the United States. As of 2003, the chamber was comprised of 3000 state and local chambers and 830 business associations. * The ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). Association * Committee on Investment of Employee Benefit Assets * National Conference on Public Employee Retirement Systems * National Association of State Retirement Administrators * American Benefits Council * ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). Industry Committee * National Association of Manufacturers Judy Xanthopoulos and Mary M. Schmitt prepared the report. To read and download a printable print·a·ble adj. 1. Capable of being printed or of producing a print: printable negatives. 2. Fit for publication: printable language. copy of the publication, go to the PSCA web site at www.psca.org. About the Profit Sharing/401k Council of America The Profit Sharing/401k Council of America (PSCA), a national non-profit association of 1,200 companies and their 5 million employees, advocates increased retirement security through profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of , 401(k) and related defined contribution programs to federal policymakers and makes practical assistance with profit sharing and 401(k) plan design, administration, investment, compliance and communication available to its members. PSCA, established in 1947, is based on the principle that "defined contribution partnership in the workplace fits today's reality." PSCA's services are tailored to meet the needs of both large and small companies with members ranging in size from Fortune 100 firms to small, entrepreneurial businesses. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion