WASHINGTON – Rep. Benjamin L. Cardin, author of pension reform legislation that would give employees more control over their retirement investments, today voted against a Republican pension bill that "lacked some key protections for employees if we want to avoid future Enrons."

    The Congressman, who joined with Rep. Rob Portman, R-OH, in February in introducing the Employee Retirement Savings Bill of Rights, HR 3669, faulted the bill that was brought to the House floor because it "failed to give employees the control they should have over their retirement savings."

    The legislation Rep. Cardin had introduced would have given employees the right to diversify company-matched stock after three years of service with the company. The Republican bill locked employees into company stock for long periods by allow companies to limit the sale of company-matched stock for a three-year rolling period, no matter how long the employee had worked for the company.

    "Under the Republican bill, employees who have spent years at a company, working and contributing to the retirement plan, can be denied the basic right to decide how their retirement savings are invested," said Rep. Cardin.

    The Congressman also expressed serious concerns over the investment advice provisions of the bill. Under the legislation, current law protections that guard against conflicts of interest in providing investment advice are swept aside. The Congressman cited the lack of adequate disclosure requirements in the bill.

    "Investment advice is a very important component of good retirement policy," said Rep. Cardin. "But it is vitally important that employees have a wide range of investment options, as well as full disclosure about the choices they have so they can make good investment decisions. This bill fails to provide workers enough choice or enough information."

    The Congressman welcomed some of the provisions in the bill. One such feature, which had been included in the bill Rep. Cardin introduced, required employees to give workers advance notice of any "blackout" on employees who wish to change investments in their retirement plan. This protection is needed, he said, to ensure that workers have a full opportunity to make investment decisions.