PENSION PROTECTION
Enron workers may be the victims of criminal wrongdoing. But we already know they're the victims of outdated federal pension laws.
In his State of the Union Address, President Bush called on Congress to enact important new safeguards to protect the pensions of millions of American workers. The President called on Congress to move quickly to enact these important reforms so that people who work hard and save for their retirement can again have full confidence in our retirement system.
Recent House passage of the Pension Security Act of 2002 (H.R. 3762), based on President Bush's pension reform proposal, was a major victory for American workers. I was proud to support this legislation which provides new guidelines for companies and workers in the management of employee pensions. H.R. 3762 also increases company disclosure requirements and expands worker access to investment advisors. The measure passed the House by a vote of 255 to 163.
Millions of Americans aren’t just employees, they’re also shareholders. They have purchased, been rewarded with and invested their retirement funds in the companies for which they work. We need to do everything we can to encourage this kind of saving and investment. The driving force behind growth and prosperity in a 21st century economy is a strong investor class. By providing careful retirement planning and restoring workers’ confidence in their investments, we can keep America’s economy strong.
H.R. 3762 requires companies to notify employees 30 days prior to a blackout period and prohibits insider sales of stocks during a blackout. In addition, the measure increases worker access to investment advisors and allows employees greater flexibility in the management and sale of company stock received in their 401(k) plans. The legislation also revises pending IRS regulations to ensure that worker stock options are not subject to payroll taxes.
This legislation provides working Americans with more information and peace of mind when planning for their retirement.
