Statement by AARP Federal Affairs Director David Certner in Opposition to Proposed Treasury Department Regulations on Cash Balance Pension Plans

AARP joins the more than 200 Members of the House and Senate in urging the President to withdraw the Treasury Department’s proposals for cash balance pension plans. If enacted, these regulations would undermine the retirement security of millions of midlife and older workers.

The proposed regulations would be devastating to the pensions and retirement plans of older workers. Employers who convert from a traditional plan to a “cash balance” plan would be able to significantly reduce future benefits as well as discontinue crediting the pension accounts of their older workers for long periods of time.

AARP urges the Treasury Department to withdraw the proposed cash balance regulations and adopt new regulations that bring these types of plans into compliance with the laws against age discrimination and protect the pension benefits and retirement security of older workers.