Tatom, Ph.

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I urge President
Bush's tax reform commission to take a hard look at this study's credit union
findings.

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Leighty, chairman and president of
First National Bank of Las Animas , Colo.org.

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Employers Express Strong Concerns Over Cost Volatility Of Defined Benefit Pension Plans PricewaterhouseCoopers Finds

New Study Finds No Good Reason for $30 Billion Credit Union Tax Exemption

"More and more studies are piling up, proving that rapidly expanding mega
credit unions have no business being tax exempt and the rest of taxpaying
Americans get stuck carrying the burden," said Camden R.

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Fine, president and
CEO of ICBA.

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* Tax-exempt credit unions continue to grow faster than banks, have
little practical limitation on membership, make business loans that
increasingly have no limit on who can borrow, how much, or for what
purpose .

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At a time
when the debate over pension reform is focused on changes that will reduce
employers ' ability to smooth cost changes-thereby increasing volatility-they
are feeling pressures for sustaining employee pension plans.

For a copy of the entire news release and chart on this topic, please
visit our Web site: http://www.

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Management Barometer is a quarterly survey of top executives
of large, U. The estimated federal tax loss from credit unions' special tax
exemption will now exceed $31 billion over the next 10 years.

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barometersurveys.

* There is no evidence that credit unions have turned their tax subsidy
into service for low-income people.

* Today the principal justification for the tax exemption is that it
already exists.

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NEW YORK, Nearly three-fourths (73 percent) of
large employers with a defined benefit pension plan report that their number-
one concern with maintaining it is expense and funding volatility .icba.

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org.

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-based multinational businesses. WASHINGTON, "Under current law, as it is being
enforced , there is no good policy argument based on equity or efficiency for
maintaining the [credit union] tax exemption.

clarifies concludes

For more information, visit
ICBA's website at http://www.

expect impacts

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"
This is the latest finding from the non-partisan Tax Foundation in their
study, "Competitive Advantage: A Study of the Federal Tax Exemption for Credit
Unions" by John A. "As our nation strives to create a more fair and simple tax
system and meet our federal budget needs, policymakers at all levels of
government can no longer ignore the large and growing tax losses and
inequities posed by the $650 billion credit union industry.

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rural entails

These findings are from interviews with 147 CFOs and Managing Directors,
of which 71, or 48 percent, have a defined benefit pension plan."

Additional findings include:

* Only 6 basis points of the credit unions 50 basis point subsidy accrues
to credit union borrowers through lower interest rates. The study and executive summary are available on ICBA's web
site at http://www.

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The study examines the operations of credit
unions under their current tax-exempt status and favorable regulator
environment.icba.

concludes vitality

And, nearly half (46 percent ) of those expecting to make changes over the
next 12 months report they will consider axing their plan.

About ICBA
The Independent Community Bankers of America represents the largest
constituency of community banks of all sizes and charter types in the nation,
and is dedicated exclusively to representing the interests of the community
banking industry. ICBA aggregates the power of its members to provide a voice
for community banking interests in Washington, resources to enhance community
bank education and marketability, and profitability options to help community
banks compete in an ever-changing marketplace.

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"Given the enormous size of the tax subsidy credit unions are receiving,
there should be clear and solid evidence that credit unions are fulfilling
some unique or extraordinary need in today's highly competitive financial
services sector -- yet that is not the case," stated Independent Community
Bankers of America (ICBA) Chairman Dale L.

concludes readiness

The Tax Foundation is a nonprofit, nonpartisan research and education
organization that has monitored tax policy at the federal, state and local
levels since 1937.

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What 's Next?
Most companies (67 percent) that have made a change in their plan over the
past three years, or are contemplating one, have considered freezing it or
closing it to new hires.