WASHINGTON – Rep. Benjamin L. Cardin will join with Republican Rep. Rob Portman on Monday in introducing legislation that would empower employees to take control of their retirement investments and give them substantial new rights to avoid over-concentration in the stock of their employer.

The Employee Retirement Savings Bill of Rights, H.R. 3669, modifies the rules that apply to 401(k) plans -- and Employee Stock Ownership Plans (ESOPs) of publicly-traded companies -- providing workers with the control they need over their retirement plan investments. Through new diversification rights, new disclosure requirements and new tax incentives for retirement education, this legislation will help employees achieve retirement security through their 401(k) plans and ESOPs.

"In the Enron debacle, thousands of workers lost their entire retirement savings because they didn't have the information they needed and the control to manage their investments," said Rep. Cardin. "This bill will give workers the tools they need to prevent future Enrons."

The Cardin/Portman bill frees most employees from the requirement to invest their own 401(k) money in stock of their employer. It will allow them, after three years of service, to sell employer stock they have received as matching contributions, and after five years of service to sell such stock received as non-elective contributions. The measure also addresses the problem of employees being unable to trade stocks in their retirement accounts during so-called "black-out" periods. The bill would require employers to notify employees at least 21 days in advance of any significant period in which employees will be unable to trade among investment options. To help employees manage their accounts prudently, the bill also requires companies to provide employees a notice advising them of the advantages of diversifying their accounts. This notice would have to be provided when workers first enroll in a retirement plan and annually thereafter.

Finally, the bill creates a new tax incentive that will help employees pay for the cost of retirement planning services. This new tax incentive will help employees obtain expert assistance when making their investment decisions, helping to reinforce the importance of diversifying retirement account savings.

"We must guarantee that employees have real retirement security. To achieve that, employees must have new rights so that they will be in control of their retirement accounts. The collapse of Enron showed us that serious loopholes in retirement security exist. This bill will close these loopholes and give employees protections that will help them make decisions that will protect their retirement security," said Rep. Cardin.

Reps. Cardin and Portman are leaders in Congress on pension reform legislation. Last year their bill making it possible for Americans to increase their contributions to retirement accounts became law.