Chairman Johnson, Ranking Member Andrews and members of the Subcommittee, we are submitting this joint written statement in response to the Subcommittee’s request for additional information and comments for the record regarding two issues that arose during the Subcommittee’s June 4, 2003 hearing on defined benefit pension plans.
The first part of this statement, prepared by Mr. VanDerhei, provides requested information regarding the incidence and uses of lump sum distributions from retirement plans. The second part of this statement, prepared by Mr. Iwry, provides requested views regarding a possible approach that would provide relief from certain regulation of defined contribution plans to employers that also sponsor “robust” defined benefit plans. Mr. Iwry concurs in the substance of the first part of this statement, and Mr. VanDerhei concurs in the substance of the second part.
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Commentary
TestimonyLump Sum Distribution
July 1, 2003