The U.S. Senate passed legislation today to extend the amount of time out of work Americans can receive unemployment insurance benefits. The House overwhelmingly passed the bill in October; the measure now goes to the president for his signature. 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.
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.
Today, the Democratic Caucus officially re-elected Rep. George Miller to chair the House Education and Labor Committee for the 111th Congress.
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.
Today, a Wall Street Journal editorial further perpetuated an active campaign that is blatantly misrepresenting Democratic efforts to preserve and strengthen Americans’ retirement security. In light of these ongoing distortions, Chairman George Miller reiterated the committee’s legislative priorities in preparation for the next Congress’ efforts to help Americans enjoy a secure retirement.
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. 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.
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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.
• Ensure workers have access to reliable independent investment advice. Too often, workers are given self-interested advice from financial advisors or money managers – advice that may not always lead to the best retirement investment. All plan participants should have access to objective advice and investment information to help them better manage their savings.
• Reduce vesting periods and improve portability of 401(k) accounts. Workers are leaving millions of dollars on the table because of employers’ rules that take away their savings when they change jobs. In many cases workers are required to work at a firm for three years or more before they can fully access their retirement savings. In addition, the GAO says that by automatically rolling over accounts into a new retirement plan when workers leave a job, Americans’ retirement savings would increase by a projected 11 percent on average, with the biggest percentage increases for low-income workers.
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.
The U.S. Bureau of Labor Statistics announced today that the unemployment rate jumped to 6.5 percent after 240,000 jobs were lost in October, the highest unemployment rate since March 1994.
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.
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.
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.
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