on an "ad hoc" basis, with little thought given to their relationship to one another or to their impact on the overall benefit sector. Recommendation: We recommend that no changes be made in laws relating to integration of Social Security with private retirement plans until completion of the study of the Presidential Retirement Commission. XII. TECHNICAL AMENDMENTS During 1976 and 1977, the ERISA Advisory Council considered several hundred proposed amendments to ERISA. Many of these amendments were technical or corrective in nature and non-controversial. We understand that the Subcommittee has access to the list of proposed amendments and the comments and recommendations of the Advisory Council with respect to the amendments. We strongly recommend that you carefully consider these technical and corrective amendments for inclusion in any ERISA amendments bill. national employee benefits institute NEBI June 15, 1978 The Honorable John H. Dent Committee on Education and U.S. House of Representatives Dear Congressman Dent: In response to your invitation of May 3, 1978, the National Employee Benefits Institute is pleased to submit the enclosed statement for the record concerning amendments to the Employee Retirement Income Security Act of 1974 (ERISA). Thank you for this opportunity to express our views. Please feel free to call on us if we can be of service to you in this endeavor. Sincerely, William H Jughe William H. Zeigler Policy Board Chairman Enclosure 451 New Jersey Avenue, SE, Washington, D.C. 20003 (202) 543-6365 20 NATIONAL EMPLOYEE BENEFITS INSTITUTE A STATEMENT OF CONCERNS ABOUT THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 PRESENTED TO THE SUBCOMMITTEE ON LABOR STANDARDS OF THE HOUSE EDUCATION AND LABOR COMMITTEE By William H. Zeigler Manager, Employee Benefits Wilson Foods, Inc. Oklahoma City, Oklahoma June 15, 1978 As Chairman of the Policy Board for the National Employee Benefits Institute (NEBI), I am pleased to be able to describe to you the concerns of NEBI members with regard to ERISA amendments. The NEBI is composed solely of employee benefits The thoughts expressed in directors of major corporations. We are all concerned about the apparent negative impact of ERISA on the private pension system and encourage you not to consider amendments which will have a further chilling effect on the growth of employee benefit plans. Any amendments which lighten the burden or reduce the complexity employers must face, while still maintaining proper and sufficient protection of the rights of participants and beneficiaries, are welcome. The statistics on post-ERISA plan terminations are staggering evidence of ERISA's impact. We believe in the private system and hope that amending legislation will encourage rather than discourage its growth. We have identified our four key areas of concern as multiple jurisdiction, preemption, reporting and disclosure, and the definition of seasonal industries. Additional areas of concern include the independent audit, merger requirements, SEC involvement, IRS imposition of vesting schedules and policy regarding investment of private pension assets. details of these concerns follow. Further Multiple Jurisdiction The NEBI is composed of people who deal with ERISA and employee benefit plans on a daily basis. They are concerned about complying with the law and providing adequate and appropriate benefits and information to plan participants and beneficiaries. We prefer that government administration of laws affecting employee benefit plans be effective and efficient so that we can better deal with such regulation. Under the present system of multiple jurisdiction, such regulation would appear to be impossible. Additionally, we perceive a real need for a focal point within the Federal government for the development of policy with respect to employee benefits issues. For these reasons, we feel that consolidation of jurisdiction in some form is ultimately desirable. We would be pleased to comment on the feasibility of any specific suggestions you are considering or develop a recommendation of our own at your request. Preemption Federal preemption of state laws affecting employee benefit plans is of paramount importance. A number of states are acting in areas which we believe are clearly preempted by ERISA, Section 514, such as the taxation of self-funded employee benefit plans and mandated benefit requirements. I am sure you can appreciate the added difficulties encountered when states have different regulations and a company's business |