Lame Duck Pension (senate)

November 19, 2008 The Honorable Max Baucus United States Senate (202) 224-0515 Washington, DC 20515 Dear Senator: On behalf of the National Electrical Contractors Association (NECA) and our 120 U.S. chapters, I am writing to urge you to consider legislation in the upcoming “Lame Duck” Congressional Session that would assist businesses in surviving the current economic crisis, particularly through flexibility in funding options for multiemployer defined benefit programs. NECA is very concerned about the significant losses the current crisis can cause to these defined benefit pension plans, and appreciates Congressional deliberation for legislation regarding this matter. The short-term problems on these pension programs will be clearly defined through reduction of benefits, a decline in retirement security, and could possibly cause a rise in unemployment, which would, in effect, prevent economic recovery. While we do not support eliminating the funding charges established under the Pension Protection Act, we are asking for temporary provisions that would relieve businesses from this burden. We ask that Congress would give multiemployer pension plans the option to temporarily freeze the current zone certification for a period of up to three years. In addition, we ask Congress to use the actuarial value of assets for zone projections in order to determine whether a plan is in endangered or critical status. Finally, we ask for Congress to consider adding five years to the current ten-year correction period. Temporary relief is essential to avert the devastating effects of inevitable job loss resulting from large contribution increases and benefit reductions. NECA is the nationally recognized voice of the electrical construction industry, comprised of over 80,000 electrical contracting firms, employing over 750,000 electrical workers and producing an annual volume of over $125 billion in electrical construction. NECA includes 120 U.S. chapters in addition to several affiliated international chapters around the world. NECA is dedicated to enhancing the industry through continuing education, labor relations, government affairs, codes and standards development, marketing and promotional activities. Thank you for your consideration of our views on this issue. If you have any questions regarding this matter, please do not hesitate to contact Lake Coulson, Executive Director, Government Affairs at: [email protected]. Respectfully,

John M. Grau Chief Executive Officer National Electrical Contractors Association 3 Bethesda Metro Center, Suite 1100 Bethesda, MD 20814 |Phone: (301) 657-3110 | Fax: (301) 215-4500 |