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For Immediate Release
Office of the Press Secretary
August 17, 2006
Fact Sheet: The Pension Protection Act of 2006: Ensuring Greater Retirement Security for American Workers
Today, President Bush Signed The Pension Protection Act Of 2006, The Most Sweeping Reform Of America's Pension Laws In Over 30 Years. Last year, President Bush asked Congress to strengthen protections for the pensions American workers rely on, and Congress responded by passing this bipartisan bill.
This Legislation Improves The Pension System And Expands Opportunities To Build Retirement Nest Eggs
The Pension Protection Act Strengthens The Federal Pension Insurance System. The legislation:
President Bush Has Sent A Clear Message To Businesses Across America That They Must Keep Their Promises To Workers. Businesses that offer a private pension plan to their employees have a duty to set aside enough money now, so their workers get what they have been promised when they retire.
The Pension Protection Act Also Contains Provisions To Help American Workers Who Save For Retirement Through Defined Contribution Plans, Like IRAs And 401(k)s. Defined contribution plans are helping Americans build a society of ownership and financial independence, and this legislation makes it easier for workers to participate in these plans. The legislation:
To Ensure A More Secure Retirement For All Americans, We Must Also Prepare For The Impact Of The Baby Boom Generation's Retirement On Entitlement Programs Like Social Security And Medicare. Entitlement programs are projected to grow faster than the economy, faster than the population, and faster than the rate of inflation. If we fail to act, Social Security, Medicare, and Medicaid will be almost 60 percent of the entire Federal budget in the year 2030. President Bush continues to call on Congress to meet its duty to reform these programs so we can ensure a secure retirement for all Americans.
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