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The provisions were championed by U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, and U.S. Reps. Howard Berman (D-CA), John Conyers (D-MI), and Zoe Lofgren (D-CA), and are expected to be signed by the President.
Among other things, they would create strong new criminal laws to penalize foreign labor recruiters and U.S. employers who lure guest workers into employment under false pretenses. They would also provide foreign workers with vital information on their legal rights when applying for employment or education related U.S. visas.
“For too long, employers and labor recruiters have escaped scot-free when exploiting and abusing guest workers. Not only do these actions take advantage of guest workers, but they also drive down wages and benefits for American workers,” said Miller. “At a time when too many Americans are seeing their jobs and wages slip away, I’m glad that Congress took this important step to start holding crooked employers and labor recruiters accountable, and want to thank Reps. Berman, Conyers and Lofgren for their leadership in making this happen.
“However, imposing criminal penalties is just one part of the equation,” Miller continued. “We’ve got to do more to improve working conditions and wages for both guest workers and U.S. workers. I hope that the next Congress and new administration will take a comprehensive approach on labor and immigration issues.”
Hundreds of thousands of guest workers come to this country each year, often mortgaging their lives to pay thousands of dollars in fees to recruiters who promise them a good job. In too many cases, these workers arrive here only to work for unlivable wages, in deplorable working conditions – a far cry from what they were promised. Under the Bush administration, guest worker programs have been allowed to operate with little oversight from the Department of Labor.
Miller is also the author of legislation, the Indentured Servitude Abolition Act of 2007, (H.3. 1763), that would more comprehensively put a stop to these practices. Among other things, the bill would discourage employers from using disreputable guest worker recruiters and prohibit foreign labor recruiters from charging workers fees or misleading workers about the type of job, wages or working conditions they could expect.
The Bush administration is expected to release new regulations shortly that would leave both American workers and guest workers in the Department of Labor’s H-2A agricultural and H-2 B non-agricultural programs with fewer labor protections and lower wages.
For more information on Miller’s efforts to root out these abuses, click here.
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The Worker, Retiree and Employer Recovery Act (H.R. 7327), suspends for one year an Internal Revenue Service requirement that account holders of 401(k)-style plans must withdraw a minimum amount of money every year after they reach 70 ½ years old. This suspension would be available to everyone regardless of their retirement account balances.
“Americans have seen trillions of dollars evaporate from their retirement accounts over the last few months as a result of our economic crisis,” said U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee. “I’m glad that Congress worked swiftly, and in a bipartisan way, to provide important relief to seniors who may face a steep tax if they do not make a withdrawal from their depleted retirement accounts.”
“This relief will help workers and seniors safeguard their retirement savings during the economic crisis.” said Ways and Means Committee Chairman Charles B. Rangel (D-NY). “Every segment of our economy is experiencing financial pain and this bipartisan legislation will go a long way to help employers do the right thing for their workers even in these difficult economic times.”
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“This year’s economic downturn has seriously impacted the U.S. job market and benefits for workers,” said Rep. Rob Andrews (D-NJ), the chairman of the Health, Employment, Labor and Pensions Subcommittee. “The House acted responsibly tonight to address this problem by passing the Worker, Retiree, and Employer Recovery Act. The bill will provide financial relief to large and small employers, as well as individuals with 401(k) accounts and alike, who have been adversely affected by this unprecedented market downturn.”
“In the face of daunting economic challenges and an unanticipated strain on our nation’s retirement system, Congress has taken a measured and appropriate step to ease the financial burden on workers, retirees, and employer-sponsored pension plans,” said U.S. Rep. Howard P. “Buck” McKeon (R-CA), the Education and Labor Committee’s senior Republican. “While we remain fully and unequivocally committed to the notion that businesses and unions must fully fund their pension obligations to their workers, the small step we’re taking today will provide much-needed relief to participants, plan sponsors, and beneficiaries in the short term, potentially staving off job cuts, benefit reductions, or financial burdens that would be far more harmful to workers and retirees in the long term.”
“The minimum distribution rules are especially burdensome in the face of sharp financial market declines; suspending these rules for 2009 will provide some much-needed relief to senior citizens, and I hope the Senate is able to act quickly on this measure,” said Rep. Jim McCrery (R-LA), the senior Republican on the Ways and Means Committee.
Current regulations require account holders of 401(k)-type account to withdraw a minimum amount of money every year after they reach 70 ½ years old. If seniors do not take out a minimum amount based on an Internal Revenue Service formula, they are subject to a 50 percent penalty. For instance, if an individual fails to withdraw $4,000, they would be assessed a $2,000 tax the next year.
H.R. 7327 also eases funding requirements for companies and other pension plans forced to make additional contributions as a result of the economic downturn and makes technical corrections to the Pension Protection Act of 2006.
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“While it is good news that fourth graders have made significant gains in math, it’s troubling that our students are still behind their international peers in both math and science – fields that are key to our country’s economic vitality and competitiveness” said Miller, the chairman of the House Education and Labor Committee. “It’s increasingly clear that building a world-class education system that provides students with a strong foundation in math and science must be part of any meaningful long-term economic recovery strategy.”
“How many red flags, how many alarms, how many reports will it take to understand that we significantly need to strengthen math and science education? Without math and science training, we cannot meet society’s needs and compete in a global marketplace. This has been urgent for a long time, but we keep behaving like it doesn’t matter” said Holt, a scientist and member of the House Education and Labor Committee, who has been a long time advocate for stronger science, technology, engineering, and math education.
According to the study, while both fourth and eighth grade students showed improvements in math, neither grade level improved in science over the past decade. The report also found that overall fourth and eighth graders in the U.S. performed above average in math and science, and that the lowest-performing fourth graders showed improvement in math between 1995 and 2007 and between 2003 and 2007.
Last summer, Congress enacted the America COMPETES Act which provides education and job training for students and workers in math, science, technology, and engineering fields. The law builds upon principles unveiled by Chairman Miller and Democratic leaders in their Innovation Agenda in November 2005. For more information about the COMPETES Act, click here.
Last year, as part of the landmark College Cost Reduction and Access Act, Congress enacted TEACH grants, which provide up-front tuition assistance of $4,000 each year – for a maximum of $16,000 – to students who commit to teaching in public schools in high-poverty communities or high-need subject areas, such as math and science. For more information about the law, click here.
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“Today’s devastating news that our nation lost more than a half million jobs in November is further evidence that we need to move quickly and decisively to put Americans back to work. Our economy will not get back on track until Americans are working again and families feel secure about their economic future.
“Our first priority must be to approve an economic recovery plan that will make investments in energy independence, rebuild our neglected infrastructure, and continue to provide relief to families struggling to make ends meet. Economists of every stripe tell us that targeted investments in infrastructure improvements and the green economy will create millions of jobs in the short-term and encourage long-term economic growth.
“But, as our nation builds a more resilient economy, we must also ensure that all workers are able to share in a rebounding economy. Workers must be able to earn a fair wage, decent benefits and have the ability to enjoy a secure retirement. I look forward to working with the new Congress and the Obama administration to improve the economic security of American workers and strengthen middle-class families.”
# # #
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“For months now, while federal student loans have remained readily available due to swift and prudent action by Congress and the administration, some students and families have had trouble accessing the additional loans they need to help pay for college. Loans are a critical part of ensuring that students can get a college education and succeed in our 21st century global economy. We can’t allow students’ dreams of going to college to be sidelined by the economic crisis.
“We hope that this new program will work as intended: To get credit markets flowing again and make loans more accessible and affordable for students and families. We look forward to learning more details about this proposal so we can be assured that it will operate in the best interests of America’s college students, their families and taxpayers.”
Miller is the author of two laws that helped safeguard federal student loans from turmoil in the economy at no cost to taxpayers. Since the enactment of these laws, no student or parent has reported trouble accessing the federal student loans for which they are eligible. For more information, click here.
Miller is also the author of a recently enacted law, the Higher Education Opportunity Act, which provides new protections for students when borrowing private educational loans, including safeguards against deceptive marketing practices, requiring private student loan certification, and prohibiting lenders from penalizing borrowers for paying off their private loans early. For more information, click here.
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“Today, President-Elect Obama announced that creating a strong, vibrant American middle class will be central to the new administration’s economic policies. Both the appointment of his economic team and this weekend’s announcement of a bold economic recovery plan prove that he intends to do just that. It’s clear that America has a new President who understands that we won’t be able to rebuild our economy unless we invest its economic fundamentals – students, workers, and middle-class families. This is exactly the kind of leadership our nation needs during this critical time.
“President-Elect Obama has assembled a team of talented, seasoned and innovative individuals who are well-equipped to tackle both the immediate and long-term economic challenges we face. His plan to create millions of new jobs by investing in our crumbling infrastructure – our roads, bridges, schools – and in a more sustainable, energy-efficient future is the right approach to get our economy moving forward again. In the coming weeks, Congress will work in a bipartisan way to deliver this plan to his desk so we can help get America back to work.”
At an Education and Labor Committee hearing in October, economists predicted that, unless immediate action was taken to create jobs, the economy could fall deeper into recession and the unemployment rate could reach at least 8 percent. Witnesses testified that making infrastructure investments are some of the most effective uses of federal dollars that create jobs in both the short-term and the long-term. For more information on that hearing, click here.
Earlier this month, Miller announced that the committee's mission in the 111th Congress would be to rebuild and strengthen America’s middle class. For more information, click here.
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“In light of today’s devastating economic news that new jobless claims rose to their highest level in more than 16 years, the Senate did the right thing for millions of out-of-work Americans. Unemployment benefits for more than a million Americans are set to expire by the end of the year. This extension will provide much-needed help for these families who still have to put food on the table, pay their home and heating bills, and look for a job.
“With our nation’s financial wounds deepening by the day, we can’t allow the rug to get pulled out from under workers looking for a new job. Extending unemployment benefits is a no-brainer – it’s one of the most effective things we can do to help workers and stimulate our economy. With the holiday season fast approaching, it’s time for the President to give workers and families a helping hand by immediately signing this bill.”
The Unemployment Compensation Extension Act of 2008 (H.R.6867) provides workers with an additional seven weeks of unemployment benefits for workers who have exhausted their regular unemployment and an additional 13 weeks of benefits for workers in states with the highest unemployment.
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“It is an honor and a privilege to continue to chair the Education and Labor Committee in the next Congress, and I thank my colleagues for their support.
“If anything, this historic election reminded us that Americans from all regions, backgrounds and political stripes are united in our shared hopes and aspirations: A quality, affordable education for our children; a good-paying job with decent benefits; and a secure retirement after a lifetime of hard work. In a nation as great as ours, these dreams can – and must – be achieved.
“I look forward to working with all members of this committee, the next Congress, and the new administration on a Main Street recovery plan that will revitalize our economy, and toward our larger goal of rebuilding and strengthening America’s middle class. Like President-Elect Obama, I’m confident we can reach this goal by working in a bipartisan way that transcends the politics of the past, and by making sure that our government is open, accountable and engages the public. Moving forward, our committee will also build on our efforts to use innovative strategies to make sure that the voices of Americans around the country are heard here in Washington.
“I also know that no one is more excited about the opportunities before us than Senator Ted Kennedy. No one has fought harder for our children, workers and families than Ted, and no one could ask for a better partner in these challenging times. I am thrilled that he has returned to the Senate, and look forward to continuing to work closely with him on the important tasks that lie ahead.”
Earlier this month, Miller outlined his priorities for the committee in the 111th Congress. For more information, click here.
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“The Wall Street Journal is needlessly creating fear among Americans rightly worried about their retirement security by misrepresenting my efforts to strengthen workers’ retirement savings – attacks that have no basis in fact. I do not support ‘abolishing’ 401(k)s, moving these plans, or changing their tax status, plain and simple,” said Miller. “The truth is that Democrats in Congress are working to preserve and strengthen 401(k)s.
“Last year, our Committee worked with the employer and investment community to pass legislation to increase transparency and protect workers’ hard-earned retirement savings from excessive and hidden fees that could cut deeply into their accounts. In addition to providing workers with better information about the fees they’re paying, we know other steps must be taken to make sure our retirement system is as strong as it can be for our nation’s workers and retirees. These principles will help guide the next Congress as we work to ensure that every American can enjoy a safe and secure retirement.”
Recent hearings held by the committee have shown the devastating toll the economic downturn has leveled on Americans’ retirement savings, including the loss of over $4 trillion in pension benefits.
To help preserve and strengthen 401(k)-style and other retirement plans, Chairman Miller today released the following principles:
Expose excess fees that Wall Street middle men take from workers accounts. Currently, millions of Americans are paying excessive 401(k) fees at the hands of Wall Street middle men who refuse to fully disclose and detail extra fees and charges paid by employees. This is wrong, especially in light of the dramatic losses faced by millions of Americans in their 401(k) plans this year. According to the GAO, even a difference of just 1 percentage point in hidden fees can drastically eat into a worker’s 401(k) account balance – by as much as 20 percent or more over a career. This 1 percentage point difference could cost a worker with a $20,000 account balance more than $12,000 in reduced savings over this time period. Bring young and low-wage workers into the system at a higher rate through automatic enrollment for employers already offering 401(k)s. Unless employers more quickly automatically enroll new workers, nearly 40 percent of workers born in 1990 will have no 401(k)-style savings at all when they retire, according to the GAO. Current law allows employers to automatically enroll their workers in their companies’ 401(k)s but employers have been slow to enroll employees. Studies show that automatic enrollment can increase participation by as much as 35 percentage points. And even after 3-4 years, the vast majority of those automatically enrolled, are still participating. Ensure that retirement accounts have diversified investment options with low fees. Many 401(k) plans have inadequate, and all too often, expensive investment options. Workers should have access to simple investment options, including low-cost index funds.In April, the committee passed the 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185), which would help workers shop around for the best retirement investment options by providing complete information on how much in fees is taken from their retirement accounts. The legislation was supported by the AFL-CIO, the AARP, the American Society of Pension Professionals and Actuaries, the Council of Independent 401(k) Recordkeepers, and the Pension Rights Center. For more information, click here.
# # #
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“Today’s announcement that our economy lost almost a quarter million jobs in October proves that we need to move quickly to help American families deal with a rapidly failing economy. The 1.2 million Americans who lost their jobs this year are desperate for real solutions to get our nation back to work and our economy moving forward again.
“We must get started right away by passing a Main Street recovery plan that will get Americans back to work by making real investments in energy independence and infrastructure improvements, and providing immediate relief to families and workers struggling with long-term unemployment.
“More than a million out of work Americans stand to lose their extended unemployment benefits by the end of the year. With potentially millions more joining the ranks of the long-term unemployed, any economic recovery package must extend the amount of time that a worker can receive unemployment insurance benefits while they look for another job.
“As we build a more resilient and robust economy, we must also ensure that workers are able to benefit as growth returns. Workers must be able to earn a fair wage, decent benefits and have the ability to enjoy a secure retirement. I look forward to working with the new Congress and the Obama administration to enact additional policies that will further strengthen our economy and its backbone – American workers and middle-class families.
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"Yesterday's historic election of Senators Barack Obama and Joe Biden as our next President and Vice President was a true victory for every child, student, worker and family in America. I congratulate Senators Obama and Biden, and I look forward to working closely with them to change the direction of our country and get our economy moving forward again."
Miller said that in the next Congress he intends to keep his committee focused on rebuilding and strengthening America's middle class, by creating jobs, improving public schools, making college more affordable, and protecting retirement savings.
"During the past two years, the Education and Labor Committee has focused on strengthening our nation's middle class – a priority that Senators Obama and Biden clearly share, as demonstrated by their careers and the focus of their historic campaign.
"With our country facing the worst economic crisis since the Great Depression and our global leadership at risk, this mission is more important than ever.
"In the next Congress, this committee will be dedicated to working with the new Obama-Biden administration and members of both parties of Congress to rescue our economy by rebuilding and strengthening America's middle class. We must get started right away by passing a Main Street recovery plan that will get Americans back to work and provide immediate relief to families and workers struggling with long-term unemployment and depleted state budgets.
"We will dedicate ourselves to improving our nation's schools and continue our efforts to make college more affordable and accessible, so that every student has the opportunity to succeed. We are committed to rebuilding our country's roads, bridges and schools, and to green retrofitting and other modern energy programs that will create millions of good-paying jobs and reestablish America's technological leadership.
"We will fight to restore workers' rights, so that every American can benefit from economic opportunity. And we will make the preservation and strengthening of retirement savings a priority, so that all Americans can enjoy a secure retirement after a lifetime of hard work.
"Today marks a new beginning. Together, we can rescue our economy, restore the promise of the American Dream, and ensure that, in a nation as great as ours, the interests of students, workers, families and retirees are at the heart of our nation's priorities."
More information on recent hearings on the economy and the committee's work over the past two years.
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###
FOR PRESS INQUIRIES
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Last year, Congress enacted The College Cost Reduction and Access Act, which provides the largest increase in student financial aid since the GI bill. The law increases the maximum Pell Grant scholarship by more than $1,000, cuts interest rates on need-based student loans in half, creates income based repayment programs for students graduating with college debt and gives loan forgiveness incentive programs for public service workers. For more information, click here.
Congress also recently enacted The Ensuring Continued Access to Student Loans Act to ensure that students and families can continue to have access to all the federal college loans they are eligible for. For more information , click here.
In August, Congress enacted the Higher Education Opportunity Act, the first reauthorization of the nation's primary higher education laws in a decade. The law addresses rising college tuition prices, makes textbook costs more manageable, simplifies the federal student aid application process, makes the Pell Grant scholarship available year-round for the first time, provides new consumer protections for federal and private student loan borrowers, and much more. For more information, click here.
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During the hearing, conducted by the House Education and Labor Committee, economists predicted that, based on past recession trends unemployment could soon reach eight percent or higher, and middle-class families’ incomes could drop by more than $2,000 this year.
“It is urgent that we prepare now to take the next steps to rescue the economy by creating jobs, providing immediate relief to the states and small businesses, and by making real investments in energy, technology and education,” said U.S. Rep. George Miller (D-CA), the chairman of the committee. “We must have a plan that speaks directly to the needs of American families and workers today.”
The number of out of work Americans has increased by 2.2 million in the last year. They join more than 2 million workers who have been unemployed longer than 27 months. In October, many workers began exhausting their unemployment insurance benefits. By the end of this month, an estimated 775,000 workers will be left without a safety net, and a total of 1.1 million workers will be in the same straits by the end of the year.
In a letter to Chairman Miller released at the hearing, economist Alan Blinder of Princeton University predicted that “unemployment will top out in the 8-8.5% range” if the coming recession is as severe as the recessions of 1981-82 and 1973-75. “My worry,” wrote Blinder, “is that we may be heading in that direction.”
“We are clearly in the early stages of a potentially very serious recession that will likely be as deep as anything we have experienced in a generation,” said Ron Blackwell, chief economist of the AFL-CIO. “Just how deep and protracted this recession will be depends on a timely, aggressive and well-focused economic recovery package.”
To help families make ends meet while they look for a new job, the Democratic Congress voted to extend unemployment benefits in early October. Unfortunately, that effort was blocked by Senate Republicans. The Bush administration threatened to veto the extension claiming it would encourage out of work Americans not to find a new job.
“There is nothing enjoyable about being up at night worrying about how you are going to make ends meet,” said Dana Stevens, an unemployed worker from Thorofare, NJ. “For anyone to suggest that receiving unemployment is like getting a free vacation is insulting and degrading to the millions like myself who are desperately trying to get back to work.”
Millions of workers not only lose their jobs during a recession, but household incomes for those with a job also decline on an average of four percent. Jared Bernstein, director of the Living Standards Program at the Economic Policy Institute, said that if past trends repeat themselves this time around, middle-class families’ who earn around $60,000 will see their income fall about $2,500 this year.
“Due to factors regarding job loss, fewer hours, and the slower wage growth driven by the weaker job market, incomes usually fall in recessions,” said Bernstein.
In September, the House of Representatives also approved an economic rescue and job creation package to help head off a deeper recession. It would have created good-paying jobs by investing in new energy technology and infrastructure. The bill would have also provided access to job training and helped working families with grocery and health care bills. Senate Republicans and the Bush administration also opposed this effort.
Many economists say that making infrastructure investments are some of the most effective uses of federal dollars that create jobs in both the short-term and the long-term.
Robert Pollin, a professor of economics at the University of Massachusetts-Amherst, said a $150 billion job creation program will create 2.9 million jobs in the short-term alone.
“In the midst of the severe financial crisis and deepening recession, it is imperative that the federal government take action as soon as possible to counteract the downturn,” said Pollin.
Pollin’s latest research also reveals that infrastructure investment produces a second wave of private sector job creation within two years, pushing the 2.9 million new jobs up to 3.3 million new jobs in a two-year time frame.
To encourage long-term job creation, investments are needed to build the nation’s technological backbone that will help foster growth in the emerging high-tech industry and green economy.
“Advanced networks will allow increased opportunities for the creation of even more highly skilled technology jobs to invent new products and improve existing ones in the vital areas of energy, health care, education, public safety and services,” said Christopher Hansen, president and CEO of AeA. “These are the jobs of the future.”
To read a letter from economist Allen Sinai, click here.
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According to documents obtained by the committee, the U.S. Pension Benefit Guaranty Corporation said they lost at least $3 billion in stock investments during the last fiscal year through August, and invested a significant portion of its funds in mortgage-backed securities. The head of the PBGC, Charles Millard, will testify before the committee on Friday in Washington regarding the agency's financial problems.
"While this crisis may have started on Wall Street, it's Main Street that stands to suffer the most," said U.S. Rep. George Miller (D-CA), chairman of the committee. "More than ever before, there is an urgent need to help Americans strengthen their retirement savings."
Today's hearing is the second the part of an investigation the committee is conducting to examine how the financial crisis is affecting Americans' retirement savings. Earlier this month, the Congressional Budget Office testified before the committee that American workers have lost at least $2 trillion in retirement savings over past 15 months. The Center on Retirement Research also just reported that $2 trillion in value in traditional defined benefit plans has been lost in the last year.
At today's hearing, retirees testified that the combination of a falling market and rising costs have had a long-lasting impact on their families' retirement security.
"The recent unstable financial crisis is having a devastating effect on my life," said Roberta Quan, a retired school teacher from San Pablo, Calif. who is also caring for her husband who has Alzheimer's disease. "A lifetime of savings in catastrophic decline is demoralizing. The bottom line is that I am retired and unable to re-earn lost funds."
Steve Carroll, a retired writer from Petaluma, Calif. agreed. "Our monthly budget has been severely depleted for life," Carroll said. "We still have our IRAs. But, as they are in mutual stock funds they are so far down in value that selling any of them right now, as the law requires of [my partner] Chuck, the loss would be an enormous percentage of the investment."
Current regulations require account holders of 401(k)-type account to withdraw a minimum amount of money every year after they reach 70 ½ years old. If seniors do not take out a minimum amount based on an Internal Revenue Service formula, they are subject to a 50 percent penalty. For instance, if an individual fails to withdraw $4,000, they would be assessed a $2,000 tax the next year.
"The current volatility, and the damage it has done, cannot be undone in the near term," said Mark Davis, a registered investment advisor. "Steps like a temporary repeal of minimum required distribution rules may help to alleviate some of the worst pain."
On October 10, Rep. Miller and Rep. Rob Andrews (D-NJ) called on U.S. Treasury Secretary Henry Paulson to suspend the tax penalty for retirees who are forced to make withdrawals but want to have additional time to rebuild their retirement savings.
Other witnesses highlighted problems with the current retirement security system where individually directed 401(k)-type plans have become a worker's main retirement savings vehicle. Where investment decisions were once made by professionals managing a traditional pension portfolio on behalf of workers, the responsibility of picking the right investments and implementing retirement savings strategies are left up to an individual account holder.
"The private retirement fortunes for all but today's oldest workers are dependent on the fate of 401(k)s," said Dr. Jacob Hacker, the co-director of the Center for Health, Economic, and Family Security at the University of California at Berkeley. "Even those who do contribute adequately tend to make common investing errors, like putting their money in low-yield bonds, neglecting to rebalance their accounts periodically, and over-investing in their own company's stock."
"Individuals have a tendency to buy at the peak, and then panic when the markets drop and sell at the bottom," said Dr. Shlomo Benartzi, a leading expert on 401(k) participant behavior and a professor at the Anderson School of Management at UCLA. "There is a real concern that individuals will repeat the same mistake during this market crisis and sell at the bottom and perhaps even stop contributing to their retirement plan."
The Education and Labor Committee passed legislation earlier in the year that would help workers shop around for the best retirement investment options by providing complete information on the fees taken from their retirement accounts. According to the Government Accountability Office, a 1 percentage point difference in fees can reduce retirement benefits by nearly 20 percent.
For more information on the "401(k) Fair Disclosure for Retirement Security Act" (H.R. 3185), click here.
For more information on Chairman Miller's request to Sec. Paulson, click here.
For more information on the PBGC, click here.
# # #
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The PBGC is a government agency that insures private-sector pension plans, manages failed pension plans and pays benefits to workers of those plans.
The head of the PBGC, Charles Millard, will testify before the House Education and Labor Committee on Friday regarding the agency's financial problems that may threaten the retirement security of millions of Americans.
"At a time when Americans' anxiety about their economic future is escalating, Millard's testimony is vital to better understand the financial situation of the nation's pension guarantor," said Chairman Miller. "Now is the time to gather all the information we need in order to rescue the economy and help workers and retirees."
According to a document obtained by the Education and Labor Committee and based on preliminary unaudited figures, the PBGC lost more than $3.1 billion in its trust fund related to the agency's stock investments for the first 11 months of its 2008 fiscal year. The PBGC trust fund invests pension assets in order to pay out benefits to workers whose pension plans were turned over to the agency.
The recent dramatic loss also comes in light of a new controversial investment policy the agency recently approved. The new policy would significantly shift PBGC assets from fixed-income securities, such as U.S. Treasuries, into more risky securities like real estate.
Millard recently testified before Congress recently that the new investment policy would not add any additional risk to the long-term stability of the trust fund.
The invitation to answer questions from Congress comes after the Millard rebuffed a committee subpoena in July that demanded the agency turn over documents regarding a report into the agency's mismanagement and lax governance practices.
For more information on the July subpoena, click here.
To see the complete PBGC document, click here.
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“With the financial crisis making hard economic times even worse for many families, we must make sure that Americans have the help they need to heat their homes this winter. This emergency relief will help the millions of seniors and low-income families who all too often are forced to choose between paying their heating bills and putting food on the table. In my home state of California alone, these funds will provide nearly $250 million in much-needed help for families and seniors. With the burdensome cost of high energy prices, this aid will give a critical helping hand to millions of families struggling to make ends meet.”
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FOR PRESS INQUIRIES
Contact: Aaron Albright / Rachel Racusen
2181 Rayburn House Office Building
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202-226-0853
“Millions of children rely on the National School Lunch Program for nutritious meals that help them thrive inside and outside the classroom. Unfortunately, the current economic crisis has placed tremendous pressure on both families and schools. Parents are finding it harder to put meals on their tables and are relying more heavily on school meal programs to help feed their kids. At the same time, schools are being forced to cut costs while still striving to offer healthy meals that kids will choose to eat.
“We know that this isn’t fair for schools or good for our children. School meal programs are on the frontlines of our nation’s childhood obesity battle – and have an enormous influence as children are developing life-long eating habits. Especially in light of the growing fiscal challenges we face, we must do everything we can to help schools find creative ways to continue providing low-cost, healthy meals for children. Providing children with access to nutritious foods while at childcare, school, or summer camp is vital to our efforts to help all children learn, succeed and thrive – and for improving the health of all Americans.”
The Committee on Education and Labor held two hearings on child nutrition gearing up for next year’s reauthorization – for more information about these hearings, click here and here.
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2181 Rayburn House Office Building
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202-226-0853
“The credit crisis and stock market crash is making an already dire unemployment situation worse,” Miller said today. “The top economists who have briefed the Democratic leadership today and over the last few weeks all agree that unemployment is going to continue to rise. We are going to examine the best ways to get Americans back to work and put our economy on the road to recovery.
“The emergency financial bill Congress approved late last month was one important step toward rescuing the economy, but we knew then that additional, comprehensive measures would be needed to help stabilize and heal our broken economy. We need a longer-term economic recovery plan that will create jobs, grow the economy, and protect Main Street. These hearings will be vital to our efforts to develop a plan that rebuilds our economy while protecting taxpayers and helping workers and their families seize the opportunities that our 21st century economy presents.”
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FOR PRESS INQUIRIES
Contact: Aaron Albright / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853