House Pension Leaders Challenge Senator Daschle to Move on Pension Protection

     WASHINGTON, D.C. -- Today, Education & the Workforce Committee Chairman John Boehner (R-OH), Ways & Means Committee Chairman Bill Thomas (R-CA), and Reps. Rob Portman (R-OH) and Sam Johnson (R-TX) sent a letter to Senate Majority Leader Tom Daschle (D-SD) urging him to bring employee pension protection legislation to the Senate floor before Labor Day.

     Nearly 100 days ago, with the support of 46 Democrats, the Republican-led House acted quickly to safeguard workers retirement savings by passing the Pension Security Act (H.R. 3762). The Senate, however, has not acted on the House bill or any other bill. On April 23, House Republican leaders sent a letter to Senator Daschle asking that he schedule such a vote before Memorial Day, but the Senate leader did not respond to the request.

     “The Senate has finally acted on corporate accountability legislation, yet Senate Democrat leaders continue to ignore their responsibility to protect the pensions of rank-and-file workers,” Boehner said. “If Senate Democrats are truly serious about protecting workers in the wake of the Enron and WorldCom meltdowns, why have they stood motionless for nearly 100 days on a bipartisan bill that would have helped thousands of workers avoid losing their retirement savings?”

     “Pension protection may be a major talking point for Senate Democrats, but clearly it has not been a major priority,” said Boehner. “Worker pensions remain vulnerable in the wake of the Enron and WorldCom collapses. Senator Daschle should schedule bipartisan pension protection legislation for a full Senate vote before Labor Day.”

     On April 11, the House approved bipartisan pension reform legislation proposed by President George W. Bush that would give workers new protections and freedoms to safeguard their retirement savings, expand worker access to quality investment advice, and insist on greater accountability from company insiders. The bill was passed by a bipartisan vote of 255-163, including 46 Democrats. The Pension Security Act was authored by Education & the Workforce Chairman John Boehner and Employer-Employee Relations Subcommittee Chairman Sam Johnson.

July 16, 2002

Senator Tom Daschle
Senate Majority Leader
S-221 U.S. Capitol
Washington, D.C. 20510

Dear Senator Daschle:

     Nearly 100 days ago, with the support of 46 Democrats, the Republican-led House on April 11 acted quickly and decisively to restore worker confidence in the nation’s pension system by passing the Pension Security Act (H.R. 3762). This bipartisan legislation would give workers unprecedented new retirement security protections and would have helped to protect thousands of Enron employees who lost their savings during the company’s collapse last year.

     In February, the President called on Congress to pass these important reforms so that people who work hard and save for their retirement can again have full confidence in our retirement system. The House has long since completed its work on behalf of investors and workers.

     We wrote to you on April 23 asking that the Senate consider this legislation promptly. It has been three months since the House acted but the Senate has yet to consider any bill to protect worker pensions. You claimed back in February that pension reform was a top priority. Unfortunately, we hear that the Senate will wait until at least September to consider a pension measure, nearly a year after Americans first learned of Enron’s financial collapse.

     This unnecessary delay prompts serious questions: How much longer will Senate Democrats make American workers wait for pension protections? How many more business scandals have to happen before Democrats act? The Senate’s continuing inaction on pension reform raises serious concerns about its commitment to protecting the retirement security of American workers.

     The bipartisan Pension Security Act gives workers new freedom to diversify contributions of company stock within three years of receiving it in their 401(k), bars company insiders from selling their own stock during “blackout” periods, expands worker access to high quality, professional investment advice, allows workers to purchase retirement planning services with pre-tax dollars, empowers workers to hold company insiders accountable for abuses, and requires companies to notify workers 30 days before the start of any “blackout” period. The bill would further protect rank-and-file employees by ensuring that statutory stock options will not be subject to payroll taxes.

     We urge you to bring the Pension Security Act to the Senate floor before Labor Day so that the full Senate can act promptly to help workers preserve and enhance their retirement savings. The House has acted, and the Senate should follow suit as soon as possible so that President Bush can quickly sign this important pension reform measure into law.

Sincerely,

/s/
John Boehner (R-OH)
Chairman
Education & the Workforce Committee

/s/
Bill Thomas (R-CA)
Chairman
Ways & Means Committee

/s/
Rob Portman (R-OH)
Chairman
House Republican Leadership Relations Subcommittee

/s/
Sam Johnson (R-TX)
Chairman
Employer-Employee Relations Subcommittee