[Congressional Record Volume 141, Number 2 (Thursday, January 5, 1995)]
[Extensions of Remarks]
[Page E46]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


   INTRODUCTION OF OVERSIGHT LEGISLATION ON PENSION PLAN TERMINATION 
                               INSURANCE

                                 ______


                         HON. HARRIS W. FAWELL

                              of illinois

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. FAWELL. Mr. Speaker, as we continue this year to celebrate the 
20th anniversary of the Employee Retirement Income Security Act of 1974 
[ERISA], I want to bring attention to the termination insurance program 
administered by the Pension Benefit Guaranty Corporation [PBGC]. The 
PBGC was created in 1974 under ERISA Title IV in order to guarantee the 
private pension benefits of employees and retirees in the event their 
company goes bankrupt and leaves their pension plans less than fully 
funded.
  Even though the General Agreement on Tariffs and Trade [GATT] 
legislation enacted last year included significant reforms of the PBGC 
termination insurance program, I believe it is essential that we 
closely monitor how these changes affect defined benefit pension plans 
and the goals set forth under ERISA for the PBGC. It might also be 
noted that the changes to PBGC included in GATT only affected the 
single-employer plan programs and not the multiemployer program.
  Over the last few years, a number of reform proposals have been 
introduced, including recommendations from the Bush administration, the 
Clinton administration, some of which were enacted in GATT, and others 
introduced by former-Representative Jake Pickle. With the passage of 
PBGC reform in GATT, my Subcommittee on Employee-Employer Relations and 
the Committee on Economic and Educational Opportunities will take a 
strong interest in closely monitoring the PBGC program. To aid the 
committee in its oversight of the PBGC termination insurance program, 
we are today reintroducing past proposals which address both the 
single-employer and multiemployer defined benefit pension programs. We 
want to look at these ongoing termination insurance programs in light 
of these suggestions, the actual changes included in GATT, as well as 
other suggestions that we are now asking interested parties to bring to 
the committee's attention.
  While our introduction today of past proposals, and the introduction 
in the future of the other proposals that come to our attention, does 
not constitute endorsement of any particular approach, we think that 
the various provisions contained in such proposals can serve as a 
valuable tool to assess the progress and effectiveness of the 
termination insurance programs administered by the PBGC.
  The role of defined benefit pension plans and the operation of the 
title IV termination insurance programs administered by the PBGC 
constitute important elements of the retirement income security 
component of our Nation's private pension system. Given our committee's 
historic jurisdiction over employee benefits under ERISA, I think it 
imperative that we pay close attention to the status of the programs 
administered by the PBGC and take a long-term view as to how those 
features of the current law and other proposals will help ensure the 
long-term soundness of the defined benefit pension system.
  The Subcommittee on Employee-Employer Relations of the Committee on 
Economic and Educational Opportunities also welcomes comments and 
suggestions regarding the oversight of other aspects of the ERISA 
pension, health, and other employee benefit programs under its purview.


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