The ERISA Industry Committee on Tuesday advised the Senate toproceed with extreme caution when making any changes to theemployer-sponsored retirement system.

ERIC, which submitted comments to the Senate Finance Committeeregarding retirement tax incentives, argues that the currentemployer-sponsored system needs to be maintained and should beenhanced, and that steps taken by the Senate Finance Committeeregarding the retirement system must be steps that promoteretirement savings.

Any changes that could intentionally or unintentionallyundermine Americans’ attempts or willingness to save for retirementare of great concern, according to ERIC.

ERIC sees changes to the tax treatment of employer-sponsoredplans as likely endangering the retirement security of millions, aswell as causing unforeseen consequences with how retirement assetsfunction in capital markets, damaging the prospects of a secureretirement for those looking to retire in the future.

“The current system involves a delicate balance between theneeds of companies and their employees,” Kathryn Ricard, ERICsenior vice president of retirement policy, said in a statement.“Uncertainty surrounding the rules and regulations of retirementplans undermines the ability of employers to offer and maintain aplan, and risks undercutting the success of the system.”

ERIC sees flexibility in plan design and funding as beingfundamental to maintaining a healthy retirement system. Theorganization is concerned that what it calls a “one-size-fits-allapproach” to regulations on the part of Congress will fail toaccount for the challenges faced by employers trying to offerbenefits to their employees.

Due to shifts in the economic landscape and the new anddifferent ways in which Americans work, ERIC argues that Congressshould be doing all it can to promote the sponsorship of retirementplans.

“At a time when retirement savings are not enough to meet futureneeds, Congress should do all it can to protect and enhance theretirement system to allow future generation to properly preparefor retirement,” ERIC said in a press release.