Noting that the decline in the market value of equity assets held in defined benefit plans has caused plans that were once fully funded to fall below the capitalization levels required under the Pension Protection Act of 2006, CUNA has urged President Bush to sign into law HR 7327, the Worker, Retiree, and Employer Recovery Act. The legislation was passed by the Senate late last week (after previous approval by the House) and sent to the president. “H.R. 7327 would phase in the pension funding targets under the Pension Protection Act of 2006 over three years. Those plans that fail to meet Pension Protection Act's funding requirements in a particular year would be required to fund up to the specified funding percentage for that year, instead of the 100% requirement. This legislation is critical to the viability of existing plans during these difficult economic times,” Mica wrote. The complete text of the letter is below.

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December 12, 2008



The Honorable George W. Bush

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20515



Dear Mr. President:



On behalf of the Credit Union National Association, I am writing to encourage you to sign into law H.R. 7327, the Worker, Retiree, and Employer Recovery Act. CUNA represents 90% of America's 8,200 credit unions, their state Leagues and their 90 million members.

The Worker, Retiree, and Employer Recovery Act is critical to all organizations with defined benefit pension plans set up for their employees. The decline in the market value of equity assets held in defined benefit plans has caused plans that were once fully funded to fall below the capitalization levels required under the Pension Protection Act of 2006. As a result, many organizations face the prospect of being required to shift operating capital into their defined benefit pension accounts. H.R. 7327 would phase in the pension funding targets under the Pension Protection Act of 2006 over three years. Those plans that fail to meet Pension Protection Act's funding requirements in a particular year would be required to fund up to the specified funding percentage for that year, instead of the 100% requirement. This legislation is critical to the viability of existing plans during these difficult economic times.

Again, I urge you to sign into law H.R. 7327, the Worker, Retiree, and Employer Recovery Act. Thank you very much for your consideration.

Sincerely,



Daniel A. Mica

President & CEO

Credit Union Natl. Assn.

Washington, DC