CIEBA Statement on the Administration's Proposal to Strengthen Middle Class Retirement Security

BETHESDA, Md., Feb. 23, 2015 /PRNewswire/ -- The Committee on Investment of Employee Benefit Assets (CIEBA), a leading pension trade association, whose members are the chief investment officers of more than 100 of the largest corporate defined benefit and defined contribution plans, welcomed the Administration's announcement to enhance retirement security for American workers by updating ERISA.

"CIEBA commends the attempt to enhance retirement security for American workers, and supports efforts to address weaknesses in ERISA's conflict of interest rule," said Deborah Forbes, Executive Director of CIEBA. "ERISA was written over 40 years ago and couldn't possibly take into account all the types of savings accounts in the marketplace today." 

Forbes added, "Providing retirement security for workers is an important objective for CIEBA members. Employer-provided plans offer important safeguards for employees – fiduciary oversight and investment management, including monitoring fees, selecting investment alternatives, providing financial education, and encouraging savings through payroll deductions." 

"CIEBA members are concerned about harmful conflicts of interest, particularly in the aggressive marketing of IRAs to 401(k) plan participants when they leave employment. When 401(k) participants leave employment and seek assistance in deciding what to do with their account balances, they may not understand that non-fiduciary service providers have a financial interest in their investment choices, and may not be working solely in their best interest. CIEBA believes that participants deserve unbiased advice and that anyone providing advice on investing 401(k) assets should be held to the same standards as plan sponsors."

For more information on retirement policy matters, or to arrange an interview, please contact Charles Stallings, CIEBA's Public Policy Coordinator, at [email protected] or by phone at 301-961-8806.

ABOUT CIEBA

The Committee on Investment of Employee Benefit Assets (CIEBA) is a nationally recognized forum for corporate pension plan sponsors on fiduciary and investment matters. CIEBA is composed of more than 100 of the largest corporate pension funds in the U.S. with about $2 trillion in retirement plan assets under management on behalf of more than 17 million plan participants and beneficiaries.

SOURCE Committee on Investment of Employee Benefit Assets