Watson Wyatt Worldwide is urging Congress to prevent the (DOE) from resurrecting a policy

WASHINGTON, March 22, 2007 – Watson Wyatt Worldwide is urging Congress to
prevent the Department of Energy (DOE) from resurrecting a policy that
undermines government contractors’ ability to provide guaranteed retirement
benefits to their workers and conflicts with long-standing public policy
supporting employer-sponsored pension plans.

In April 2006, the agency announced it would no longer reimburse
contractors for expenses associated with defined benefit pension coverage
for new employees.  Following criticism from the public and members of
Congress, the DOE announced in June 2006 that it would put the policy on
hold for a year and consult with key stakeholders. In recent weeks, agency
officials have been briefing contractors on the policy and indicating it
will be implemented.

“We are very concerned that the DOE is attempting to implement this
dangerous policy once again,” said Gene Wickes, global director of benefits
consulting at Watson Wyatt, a leading global consulting firm.  “Congress
passed comprehensive pension reform designed to help preserve
employer-sponsored pension programs, so it is unbelievable that a U.S.
government agency would pursue a policy that could threaten the retirement
security of American workers.”  

Watson Wyatt criticized the policy last year, warning that it undermines
contracting employers’ ability to provide guaranteed retirement benefits to
their workers and sends a negative signal about employer-sponsored pension
plans overall.  The policy denies employers the flexibility they need to
design retirement plans that best suit the needs of their workforce —
whether that involves defined benefit plans, such as a traditional pension,
or defined contribution plans, such as a 401(k).

Wickes said: “Congress should not support the DOE’s pension policy, and we
hope there will not be such a significant change in U.S. pension policy.
The federal government should not dictate the types of plans that employers
can and cannot offer to employees, especially by prohibiting guaranteed
pensions.  Ironically, federal employees continue to receive such
benefits.”  

More information about the policy the DOE proposed in 2006 can be found
here.

About Watson Wyatt Worldwide

Watson Wyatt (NYSE: WW) is the trusted business partner to the world’s
leading organizations on people and financial issues.  The firm’s global
services include: managing the cost and effectiveness of employee benefit
programs; developing attraction, retention and reward strategies; advising
pension plan sponsors and other institutions on optimal investment
strategies; providing strategic and financial advice to insurance and
financial services companies; and delivering related technology,
outsourcing and data services.  Watson Wyatt has 6,000 associates in 30
countries and is located on the Web at www.watsonwyatt.com.

Contact

Ed Emerman, 609/452-5967, eemerman[at]eaglepr.com
Emily Rieger, 703/258-7634, emily.rieger[at]watsonwyatt.com

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