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Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., was on hand at the White House today as President Bush signed a bill that would protect retirement funds of Americans as well as reduce the deficit.

Language included in the “Deficit Reduction Omnibus Reconciliation Act of 2005", S. 1932 will reform the operations of the Federal Deposit Insurance Corporation (FDIC) to reflect inflation and the growing size of deposits. Enzi, member of the Senate Banking Committee, has worked on the language for the past five years and said the changes are important for banks in rural areas.

“Today is an important day for anyone who depends on banks and credit unions to keep their hard-earned money safe. Small banks across the country, especially those in Wyoming, serve an important role by investing in their communities and providing financial services to local businesses and customers. By guaranteeing community bank deposits under the new law, the FDIC will ensure that banks and credit unions will continue these crucial functions in the future,” said Enzi.

The bill would change current FDIC deposit insurance limits to reflect inflation and emphasize the need for Americans to save more for retirement. General and municipal deposit accounts will continue to be insured at the $100,000 limit, but allowed to be adjusted for inflation every five years. Retirement coverage will be immediately increased from $100,000 to $250,000 and will be adjusted for inflation the same as other accounts.

The deficit reduction bill is a historic federal savings bill that would decrease the federal deficit by about $40 billion over five years. The Health, Education, Labor and Pensions Committee, which Enzi chairs, was charged earlier last year with providing nearly 40 percent of the overall savings target. Enzi’s committee exceeded the targeted savings by $2.75 billion, with total savings of $16 billion.