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First Congressional District of New Mexico
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ask.heather@mail.house.gov

In Washington DC
442 Cannon House
Office Building
Washington, DC
20515
202-225-6316 Phone
202-225-4975 Fax
In Albuquerque
20 First Plaza NW
Suite 603
Albuquerque, NM
87102
505-346-6781 Phone
505-346-6723 Fax

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Congresswoman Heather Wilson, First Congressional District of New Mexico


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Wilson Votes to Help Workers Preserve Their Retirement Savings April 11, 2002
 
Washington, DC-Congresswoman Heather Wilson today voted in favor of The Pension Security Act, a bill that includes new safeguards to help workers preserve and enhance their retirement security. The bill requires greater accountability of companies and senior corporate executives and gives incentives for encouraging diversification of employee retirement portfolios.

“Recent events have brought to light the need to reform federal law with respect to employer-based retirement plans,” said Wilson. “Workers must be fully protected and fully prepared with the tools they need to preserve and enhance their retirement savings.”

The Pension Security Act gives employees new freedom to sell company stock and diversify into other investment options. Employers will have the flexibility to promote employee ownership while protecting the employee`s interest in diversifying their portfolio. Under current law, employers are allowed to restrict a worker`s ability to sell their company stock in certain situations until they are age 55 years old and/or have 10 years of service with the company.

The Pension Security Act encourages employers to make investment advice available to their employees and allows qualified financial advisors to offer investment advice only if they agree to act solely in the interests of the workers they advise. It also prohibits senior corporate executives from selling company stock during “blackout” periods when workers are unable to change investments in their plans and require companies to give 30-days’ notice before a blackout period begins. Companies will be required to give workers quarterly benefit statements that include information about accounts, including the value of their assets, their rights to diversify, and the importance of maintaining a diversified portfolio. Under current law, the reports are due annually and do not require as much information.

The Pension Security Act passed the House by a vote of 255 to 163. It will now go to the Senate for consideration.


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