WASHINGTON, D.C. -- Education & the Workforce Committee Chairman John Boehner (R-OH), Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX), and Subcommittee Vice Chairman Ernie Fletcher (R-KY) today introduced the Pension Security Act, the House version of President Bush’s plan to protect and strengthen employees' pensions and 401(k)s. The measure includes new safeguards and options to help workers preserve and enhance their retirement security, and insists on greater accountability from companies and senior corporate executives during “blackout” periods when rank-and-file workers are unable to make changes to their retirement accounts.

     Under the Pension Security Act, workers would have more freedom to diversify their investments, much greater access to high quality investment advice, advance notice before blackout periods, more information about their pensions, and other tools they can use to maximize the potential of their 401(k) plans and ensure a secure retirement future. The bill also clarifies that employers have a fiduciary responsibility for the security of workers’ investments during “blackout” periods and bars senior corporate executives from selling their own stock at times when rank-and-file workers cannot make changes to their 401(k) accounts.

     The bill includes a measure already approved by the House with strong bipartisan support -- the Retirement Security Advice Act, which encourages employers to make investment advice available to employees as a benefit. Senior executives typically have access to professional investment advice regarding their retirement savings, but rank-and-file employees do not.

     “This bill sends a clear message that Congress is committed to restoring worker confidence in America’s pension system in the wake of the Enron collapse,” said Boehner.

     “Our committee has been engaged on the pension reform issue for several years, and by introducing the President’s reform plan, we continue our commitment to ensuring that our nation’s workers realize their dream of a safe, secure retirement,” Boehner noted. “The bill is the first step toward a consensus product that can eventually be signed into law. It will help restore worker confidence in the nation’s retirement security and pension system.”

     “People want to retire with a nest egg, not a goose egg. Unfortunately, countless people have lost their life savings in the wake of the collapse of Enron. It’s just devastating,” said Johnson. A Member of both the Committee on Ways and Means as well as Education and the Workforce, Johnson is the only Member of Congress in the U.S. House of Representatives to serve on both committees and have jurisdiction over tax, labor, and retirement issues.

     “After years of retirement investing, American workers should not have to fret about their future. This important legislation will equip them with the tools they need to make informed decisions and enhance their retirement savings,” said Rep. Fletcher, the EER subcommittee’s vice chairman.

     “Now more than ever, strengthening retirement security must be a top priority. Now more than ever, empowering employees with high-quality investment advice must be a top priority. Now more than ever, Congress must act to protect peoples’ retirement savings,” Johnson said.

     “This bill is a good starting point and I look forward to working with pension plan participants, sponsors, and administrators to improve it,” said Johnson.

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