House Moves to Protect
Americans’ Retirement Savings
Legislation Expands and Protects Worker Retirement Planning Options

April 11, 2002

WASHINGTON - Calling its passage “a major victory for American workers,” Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted today to approve the Pension Security Act of 2002, H.R. 3762. The legislation 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 by a vote of 255 to 163.

“Millions of Americans aren’t just employees, they’re also shareholders,” said Dreier. “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.”

Providing new protections and options for workers, 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.

Dreier commended Chairmen John Boehner (R-OH) and Bill Thomas (R-CA) of the Education and Workforce and the Ways and Means Committees for their leadership in bringing H.R. 3762 to the floor. “This legislation provides working Americans with more information and peace of mind when planning for their retirement,” Dreier said.