Workforce Republicans Introduce Pension Legislation to Provide Financial Flexibility for

Displaced Gulf Coast Workers

WASHINGTON, D.C. – Members of the House Committee on Education & the Workforce today introduced the Pension Flexibility for Displaced Workers Act, legislation to provide additional financial flexibility to Gulf Coast workers displaced by Hurricane Katrina.  Under current law, workers and their families may apply for emergency loans and hardship distributions from their personal retirement plans, such as 401(k)s.  The Pension Flexibility for Displaced Workers Act removes red tape and bureaucratic barriers to ensure that displaced workers in the Gulf Coast region who seek these loans or distributions may do so more quickly and easily.

“This legislation gives displaced Gulf Coast workers the opportunity to access their own money more quickly on an emergency basis,” said Rep. John Boehner, Chairman of the House Education & the Workforce Committee and sponsor of the Pension Flexibility for Displaced Workers Act.  “Congress should ensure that we are taking every reasonable step to provide these families the flexibility they need during this emergency to access their personal financial resources.  This measure does just that.”

Specifically, the Pension Flexibility for Displaced Workers Act authorizes the Secretary of Labor to temporarily ease time-consuming and often burdensome restrictions under the Employee Retirement Income Security Act (ERISA) in order to facilitate quicker distribution of 401(k) assets to victims of Hurricane Katrina who choose to access these funds on an emergency basis.  This new authority is limited to one year.

“We’ve made good progress in the House over the last few weeks by providing families of the region with employment, tax, and education relief, and this measure has been crafted in that same spirit,” said Rep. Charles Boustany (R-LA), a member of the House Committee on Education & the Workforce.

“There are people who have lost everything they own.  We must do everything we can to eliminate bureaucratic red tape so people can focus on getting their lives back together.  They should not be worrying about government requirements that too often get in the way during emergency situations,” noted Rep. Sam Johnson (R-TX), chairman of the Employer-Employee Relations Subcommittee. 

“This measure represents another step in the comprehensive process that the House is undertaking to address the financial needs of all those impacted by the tragedy,” concluded Rep. John Kline (R-MN), vice-chairman of the Employer-Employee Relations Subcommittee.

For additional information on administrative and legislative actions taken to assist students, schools, workers, families, and communities impacted by Hurricane Katrina, visit the “Hurricane Katrina Rebuilding & Recovery” website at http://edworkforce.house.gov/issues/109th/hurricane/katrina.htm.

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