He noted that there are a number of provisions in the bill that the industry supports “and would like to see become the law of the land.” On the other hand, he said, “an unsustainable estate tax reform package would, in our view, be a big mistake.”

Mr. Kerley added, “We will continue to press for the positive aspects of the pension package, as well as a reasonable and sustainable estate tax reform plan.”

The talks collapsed after Senate members of the Conference Committee, including most of the Republican members of the panel, early Thursday said they would not vote for the Conference report if a part of the package extending certain business tax credits was removed.

The House Republican leadership and Sen. William Frist, R-Tenn., Senate majority leader, wanted the business tax package removed from the bill and joined with a generous estate tax reform package that Mr. Frist has been trying to get past reluctant Democrats for several years.

Democrats–and the insurance industry–oppose the Republican plan, proposing a more modest plan they believe would be more sustainable and less of a burden on federal revenues.

Senate Finance Chairman Charles Grassley, R-Iowa, and ranking member Max Baucus, D-Mont., have pushed to keep the tax extenders in the pension package. House Ways and Means Chairman Bill Thomas, R-Calif., in the last week has emerged as the leader of the Republican effort to attach them to legislation calling for a substantial–and expensive–reduction in the estate tax.

Sen. Edward M. Kennedy, D-Mass., and a conferee, issued a statement that “Republican tax politics got in the way of progress for the retirement security of tens of millions Americans.”

“There is no reason why the Conference Committee that has taken four-and-a-half months is now at a standstill because Republicans are at a stalemate,” Mr. Kennedy said.

He advised “rising above politics,” adding, “It is long past time that we get the job of strengthening America's retirement security done–and get it done right.”