ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release June 23, 2005 #05-40
E-mail: [email protected]

ACB URGES CONGRESS TO CREATE COMMUNITY BANK OPTION FOR SOCIAL SECURITY PERSONAL RETIREMENT ACCOUNTS

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

WASHINGTON, D.C. — America’s Community Bankers urged Congress today to create the “Community Bank Option” for Social Security personal retirement accounts.

Testifying before the House Financial Institutions Subcommittee, ACB board member Michael J. Brown, Sr. said: “ACB strongly believes that the Community Bank Option should be available for workers choosing personal Social Security accounts. It will increase their choices, reduce their risks and help grow their communities.”

ACB supports the Community Bank Option resolution recently introduced by Reps. Tom Feeney (R-Fla.) and Pete Sessions (R-Texas), and has urged all House members to vote for it. “We have been working on this with members of Congress and the administration for some time to make certain that workers have a full range of options for investing their Social Security personal accounts,” Brown said.

“Any Social Security reform should give workers the choice of relying on the products their community banks offer for their personal retirement accounts, in addition to those investment options available on Wall Street,” said Brown, who is president and CEO of Harbor Federal Savings Bank, Ft. Pierce, Fla.

“Workers should have the option of seeking advice on their personal accounts from knowledgeable people they already know and trust — their hometown community banker,” said Brown. “Community banks already offer a variety of federally insured retirement investments, including FDIC-insured individual retirement accounts and certificates of deposit.”

Brown said that “workers of all ages would benefit from the Community Bank Option.” He explained that those seeking a greater return than that provided by the current Social Security program may be wary of investing in stock and bonds that carry a high risk. “For these workers, a long-term, federally insured deposit account from a community bank would be the most appropriate investment for all or part of the funds made available by Social Security reform.” Older workers nearing retirement would benefit from FDIC-insured accounts as a safe place to roll over funds from riskier personal account products, he added.

Brown also advocated an increase in FDIC insurance coverage from the current $100,000. “A substantial increase in FDIC coverage for retirement accounts would strengthen the viability of the insured deposit account option,” he said.

“Deposits in FDIC-insured accounts return money to the local communities where the workers live. Community banks invest these funds in their communities through loans to local businesses, mortgage loans to families, education loans to students and in many other ways.”

Click here to read the testimony

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-