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Second, some in the benefits community support proposals that would allow employees to make pre-tax employee contributions (and receive employer-provided matching benefit accruals) under defined benefit plans. We believe that Congress should consider such proposals. We are generally supportive of such small business information proposals. But we must also note that there are small business information significant challenges in assuring that employees properly understand the complex relationship between annual contributions at various ages and the ultimate retirement benefits that can be "purchased" with small business information such annual contributions. Also, we are concerned about not undermining the unique features that make defined benefit plans important components of the retirement security solution. So, for example, we believe that Congress should consider requiring that in order for employees to make pre-tax contributions to a particular defined benefit plan, the plan must provide at least a minimum level of employer-funded, nonelective benefits to at least a broad cross-section of employees.
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