[Congressional Record Volume 141, Number 76 (Tuesday, May 9, 1995)]
[House]
[Page H4551]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                   THE PENSION PROTECTION ACT OF 1995

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 4, 1995, the gentleman from New Jersey [Mr. Saxton] is 
recognized during morning business for 5 minutes.
  Mr. SAXTON. Mr. Speaker, I am introducing a bill today which is known 
as the Pension Protection Act of 1995. I must say that usually I am 
pleased to introduce a bill. Today I say that I regret that it is 
necessary to introduce this bill. But it is, because when American 
workers get their check at the end of the pay period and they look at 
the check stub, they look to see, how much has been deducted for their 
contribution to their pension plan. And those pension plans have become 
very, very important, because those are essentially savings that the 
American worker is putting aside for his or her retirement.
  The Clinton administration has been up to some mischief, I believe, 
that is destructive to that process. So the Pension Plan Act of 1995, 
which is cosponsored by our leadership on the Republican side, and I 
certainly invite our Democrat friends to join with us as well, is an 
attempt to protect the American worker from the mischief of the Clinton 
administration.
  It is interesting to note that something over $3.5 trillion are in 
private pension funds today. This is the magnitude of the risk that has 
been brought about by the Clinton administration. Why? Because the 
administration has targeted private pension funds as a new way to 
finance their liberal social agenda.
  Faced with an angry revolt of voters last November against too much 
Federal spending, President Clinton and his Department of Labor are 
trying to use private pensions to do what they used to do through old 
fashioned taxing-and-spending. These social investments include: Public 
housing, infrastructure, and pork-barrel projects.
  The administration has dubbed these social projects ``Economically 
Targeted Investments'' or ETI's, but I prefer to call them PTI's or 
``Politically Targeted Investments.''
  Let me emphasize that targeting private pension fund investments is a 
radical and dangerous idea. ETI's violate the clear mandate of the 
Federal law that Congress passed to protect private pensions--the 
Employee Retirement Income Security Act or ERISA--which requires that a 
pension fund manger must give complete and undivided loyalty to the 
pension beneficiaries.
  Let me quote directly from ERISA: A pension fund manager must 
``discharge his duties with respect to a plan solely in the interest of 
the participants and beneficiaries and for the exclusive purpose of (I) 
providing benefits to participants and their beneficiaries; and (II) 
defraying reasonable expenses of administering the plan.''
  Besides ETI's obvious conflict with ERISA, the best
   economic research indicates that pension funds that target social 
investments produce below market returns.

  The Clinton administration's ultimate objective is to establish an 
ETI quota for every private pension fund.
  What Secretary Reich would make permissible today, will become 
compulsory tomorrow.
  Today, I am introducing a bill that will protect the 36 million 
private pension participants from President Clinton's pension fund 
grab. My bill, the Pension Protection Act of 1995, will not alter the 
fiduciary duties laid out in ERISA. Instead, my bill will simply 
reiterate that the act means what it says, no more, no less.
  ERISA could not be clearer. Trustees may not invest in ETI's because 
by definition ETI's seek to benefit someone other that solely the 
participants and beneficiaries of the pension plan; and ETI's pursue an 
objective other than exclusively the interest of the plan's 
participants and beneficiaries.
  The security of our pension funds is no small issue. Every American 
who plans on retiring someday should be very concerned about that the 
Clinton administration is up to. I believe that if we act quickly, we 
can ensure that everyone working today can rest easier if my bill to 
protect their pensions is passed.

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