[Congressional Record Volume 141, Number 141 (Tuesday, September 12, 1995)]
[House]
[Pages H8737-H8739]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROVIDING FOR CONSIDERATION OF H.R. 1594, RESTRICTIONS ON PROMOTION BY 
 GOVERNMENT OF USE OF EMPLOYEE BENEFIT PLANS OF ECONOMICALLY TARGETED 
                              INVESTMENTS

  Mr. LINDER. Mr. Speaker, by direction of the Committee on Rules, I 
call up House Resolution 215 and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 215

       Resolved, That at any time after the adoption of this 
     resolution the Speaker may, pursuant to clause 1(b) of rule 
     XXIII, declare the House resolved into the Committee of the 
     Whole House on the State of the Union for consideration of 
     the bill (H.R. 1594) to place restrictions on the promotion 
     by the Department of Labor and other Federal agencies and 
     instrumentalities of economically targeted investments in 
     connection with employee benefit plans. The first reading of 
     the bill shall be dispensed with. General debate shall be 
     confined to the bill and shall not exceed two hours equally 
     divided and controlled by the chairman and ranking minority 
     member of the Committee on Economic and Educational 
     Opportunities. After general debate the bill shall be 
     considered for amendment under the five-minute rule. It shall 
     be in order to consider as an original bill for the purpose 
     of amendment under the five-minute rule the amendment in the 
     nature of a substitute recommended by the Committee on 
     Economic and Educational Opportunities now printed in the 
     bill. Each section of the committee amendment in the nature 
     of a substitute shall be considered as read. At the 
     conclusion of consideration of the bill for amendment the 
     Committee shall rise and report the bill to the House with 
     such amendments as may have been adopted. Any Member may 
     demand a separate vote in the House on any amendment adopted 
     in the Committee of the Whole to the bill or to the committee 
     amendment in the nature of a substitute. The previous 
     question shall be considered as ordered on the bill and 
     amendments thereto to final passage without intervening 
     motion except one motion to recommit with or without 
     instructions.

  The SPEAKER pro tempore. The gentleman from Georgia [Mr. Linder] is 
recognized for 1 hour.
  (Mr. LINDER asked and was given permission to include extraneous 
material.)
  Mr. LINDER. Mr. Speaker, for the purpose of debate only, I yield the 
customary 30 minutes to the gentleman from Ohio [Mr. Hall], pending 
which I yield myself such time as I may consume. During consideration 
of this resolution, all time yielded is for the purpose of debate only.
  Mr. Speaker, House Resolution 215 is a completely open rule providing 
for the consideration of H.R. 1594, the Pension Protection Act. This 
rule provides for 2 hours of general debate divided equally between the 
chairman and ranking minority member of the Committee on Economic and 
Educational Opportunities, after which any Member will have the 
opportunity to offer an amendment to the bill under the 5-minute rule.
  It shall be in order to consider as an original bill for amendment 
under the 5-minute rule the amendment in the nature of a substitute 
recommended by the Committee on Economic and Educational Opportunities, 
and each section shall be considered as read. The rule also provides 
one motion to recommit, with or without instructions, as is the right 
of the minority.
  I am pleased this bill will be considered under an open rule, and I 
believe that 2 hours of general debate and an open amending process 
will assure that the legislation in question undergoes thorough 
deliberation in the House. The rule makes every effort to engender open 
debate and assures all Members the opportunity
 to modify this legislation on the House floor.

  House Resolution 215 allows for the consideration of H.R. 1594, 
legislation that will prohibit Federal agencies from encouraging 
private pension plans to invest in economically targeted investments. 
This bill also benefits the American taxpayers by saving over $\1/2\ 
million by appropriately abolishing the clearinghouse hired by the 
Labor Department to encourage investments in ETI ventures.
  While ERISA requirements state that a fiduciary must manage funds 
solely for the benefit of the plan's participants, Interpretive 
Bulletin 94-1 sanctions the administration's gambling of trillions of 
dollars in pension assets in exchange for incidental social welfare 
benefits. The promotion of these political investments is truly 
government irresponsibility at its worst.
  As a cosponsor of this legislation, I have long believed that the ETI 
plan is among the worst ideas to come out of the Clinton 
administration. Studies done on targeted social investments demonstrate 
that they are extremely risky and yield much lower returns than 
conventional pension investments. We guarded seniors from socialized 
health care last year; we will work to save Medicare in the coming 
months; and I look forward today to safeguarding their pensions with 
the passage of H.R. 1594.
  Mr. Speaker, this legislation will assure that the pensions of 
millions of Americans will be managed solely for the exclusive purpose 
of providing benefits to pension participants. H.R. 1594 was favorably 
reported out of the Committee on Economic and Educational 
Opportunities, as was the open rule by the Rules Committee. I urge my 
colleagues to support this open rule, so that we may proceed with 
consideration of this important legislation.
  Mr. Speaker, for the Record I include the following material:

  THE AMENDMENT PROCESS UNDER SPECIAL RULES REPORTED BY THE RULES COMMITTEE,\1\ 103D CONGRESS V. 104TH CONGRESS 
                                            [As of September 8, 1995]                                           
----------------------------------------------------------------------------------------------------------------
                                                  103d Congress                        104th Congress           
              Rule type              ---------------------------------------------------------------------------
                                       Number of rules    Percent of total   Number of rules    Percent of total
----------------------------------------------------------------------------------------------------------------
Open/Modified-open \2\..............                 46                 44                 43                 73
Modified Closed \3\.................                 49                 47                 14                 24
Closed \4\..........................                  9                  9                  2                  3
                                     ---------------------------------------------------------------------------

[[Page H 8738]]
                                                                                                                
      Totals:.......................                104                100                 59                100
----------------------------------------------------------------------------------------------------------------
\1\ This table applies only to rules which provide for the original consideration of bills, joint resolutions or
  budget resolutions and which provide for an amendment process. It does not apply to special rules which only  
  waive points of order against appropriations bills which are already privileged and are considered under an   
  open amendment process under House rules.                                                                     
\2\ An open rule is one under which any Member may offer a germane amendment under the five-minute rule. A      
  modified open rule is one under which any Member may offer a germane amendment under the five-minute rule     
  subject only to an overall time limit on the amendment process and/or a requirement that the amendment be     
  preprinted in the Congressional Record.                                                                       
\3\ A modified closed rule is one under which the Rules Committee limits the amendments that may be offered only
  to those amendments designated in the special rule or the Rules Committee report to accompany it, or which    
  preclude amendments to a particular portion of a bill, even though the rest of the bill may be completely open
  to amendment.                                                                                                 
\4\ A closed rule is one under which no amendments may be offered (other than amendments recommended by the     
  committee in reporting the bill).                                                                             



                          SPECIAL RULES REPORTED BY THE RULES COMMITTEE, 104TH CONGRESS                         
                                            [As of September 8, 1995]                                           
----------------------------------------------------------------------------------------------------------------
  H. Res. No. (Date                                                                                             
       rept.)               Rule type             Bill No.                 Subject           Disposition of rule
----------------------------------------------------------------------------------------------------------------
H. Res. 38 (1/18/95)  O...................  H.R. 5..............  Unfunded Mandate Reform..  A: 350-71 (1/19/   
                                                                                              95).              
H. Res. 44 (1/24/95)  MC..................  H. Con. Res. 17.....  Social Security..........  A: 255-172 (1/25/  
                                            H.J. Res. 1.........  Balanced Budget Amdt.....   95).              
H. Res. 51 (1/31/95)  O...................  H.R. 101............  Land Transfer, Taos        A: voice vote (2/1/
                                                                   Pueblo Indians.            95).              
H. Res. 52 (1/31/95)  O...................  H.R. 400............  Land Exchange, Arctic      A: voice vote (2/1/
                                                                   Nat'l. Park and Preserve.  95).              
H. Res. 53 (1/31/95)  O...................  H.R. 440............  Land Conveyance, Butte     A: voice vote (2/1/
                                                                   County, Calif.             95).              
H. Res. 55 (2/1/95).  O...................  H.R. 2..............  Line Item Veto...........  A: voice vote (2/2/
                                                                                              95).              
H. Res. 60 (2/6/95).  O...................  H.R. 665............  Victim Restitution.......  A: voice vote (2/7/
                                                                                              95).              
H. Res. 61 (2/6/95).  O...................  H.R. 666............  Exclusionary Rule Reform.  A: voice vote (2/7/
                                                                                              95).              
H. Res. 63 (2/8/95).  MO..................  H.R. 667............  Violent Criminal           A: voice vote (2/9/
                                                                   Incarceration.             95).              
H. Res. 69 (2/9/95).  O...................  H.R. 668............  Criminal Alien             A: voice vote (2/10/
                                                                   Deportation.               95).              
H. Res. 79 (2/10/95)  MO..................  H.R. 728............  Law Enforcement Block      A: voice vote (2/13/
                                                                   Grants.                    95).              
H. Res. 83 (2/13/95)  MO..................  H.R. 7..............  National Security          PQ: 229-100; A: 227-
                                                                   Revitalization.            127 (2/15/95).    
H. Res. 88 (2/16/95)  MC..................  H.R. 831............  Health Insurance           PQ: 230-191; A: 229-
                                                                   Deductibility.             188 (2/21/95).    
H. Res. 91 (2/21/95)  O...................  H.R. 830............  Paperwork Reduction Act..  A: voice vote (2/22/
                                                                                              95).              
H. Res. 92 (2/21/95)  MC..................  H.R. 889............  Defense Supplemental.....  A: 282-144 (2/22/  
                                                                                              95).              
H. Res. 93 (2/22/95)  MO..................  H.R. 450............  Regulatory Transition Act  A: 252-175 (2/23/  
                                                                                              95).              
H. Res. 96 (2/24/95)  MO..................  H.R. 1022...........  Risk Assessment..........  A: 253-165 (2/27/  
                                                                                              95).              
H. Res. 100 (2/27/    O...................  H.R. 926............  Regulatory Reform and      A: voice vote (2/28/
 95).                                                              Relief Act.                95).              
H. Res. 101 (2/28/    MO..................  H.R. 925............  Private Property           A: 271-151 (3/2/95)
 95).                                                              Protection Act.                              
H. Res. 103 (3/3/95)  MO..................  H.R. 1058...........  Securities Litigation      ...................
                                                                   Reform.                                      
H. Res. 104 (3/3/95)  MO..................  H.R. 988............  Attorney Accountability    A: voice vote (3/6/
                                                                   Act.                       95)               
H. Res. 105 (3/6/95)  MO..................  ....................  .........................  A: 257-155 (3/7/95)
H. Res. 108 (3/7/95)  Debate..............  H.R. 956............  Product Liability Reform.  A: voice vote (3/8/
                                                                                              95)               
H. Res. 109 (3/8/95)  MC..................  ....................  .........................  PQ: 234-191 A: 247-
                                                                                              181 (3/9/95)      
H. Res. 115 (3/14/    MO..................  H.R. 1159...........  Making Emergency Supp.     A: 242-190 (3/15/  
 95).                                                              Approps..                  95)               
H. Res. 116 (3/15/    MC..................  H.J. Res. 73........  Term Limits Const. Amdt..  A: voice vote (3/28/
 95).                                                                                         95)               
H. Res. 117 (3/16/    Debate..............  H.R. 4..............  Personal Responsibility    A: voice vote (3/21/
 95).                                                              Act of 1995.               95)               
H. Res. 119 (3/21/    MC..................  ....................  .........................  A: 217-211 (3/22/  
 95).                                                                                         95)               
H. Res. 125 (4/3/95)  O...................  H.R. 1271...........  Family Privacy Protection  A: 423-1 (4/4/95)  
                                                                   Act.                                         
H. Res. 126 (4/3/95)  O...................  H.R. 660............  Older Persons Housing Act  A: voice vote (4/6/
                                                                                              95)               
H. Res. 128 (4/4/95)  MC..................  H.R. 1215...........  Contract With America Tax  A: 228-204 (4/5/95)
                                                                   Relief Act of 1995.                          
H. Res. 130 (4/5/95)  MC..................  H.R. 483............  Medicare Select Expansion   A: 253-172 (4/6/  
                                                                                              95)               
H. Res. 136 (5/1/95)  O...................  H.R. 655............  Hydrogen Future Act of     A: voice vote (5/2/
                                                                   1995.                      95)               
H. Res. 139 (5/3/95)  O...................  H.R. 1361...........  Coast Guard Auth. FY 1996  A: voice vote (5/9/
                                                                                              95)               
H. Res. 140 (5/9/95)  O...................  H.R. 961............  Clean Water Amendments...  A: 414-4 (5/10/95) 
H. Res. 144 (5/11/    O...................  H.R. 535............  Fish Hatchery--Arkansas..  A: voice vote (5/15/
 95).                                                                                         95)               
H. Res. 145 (5/11/    O...................  H.R. 584............  Fish Hatchery--Iowa......  A: voice vote (5/15/
 95).                                                                                         95)               
H. Res. 146 (5/11/    O...................  H.R. 614............  Fish Hatchery--Minnesota.  A: voice vote (5/15/
 95).                                                                                         95)               
H. Res. 149 (5/16/    MC..................  H. Con. Res. 67.....  Budget Resolution FY 1996  PQ: 252-170 A: 255-
 95).                                                                                         168 (5/17/95)     
H. Res. 155 (5/22/    MO..................  H.R. 1561...........  American Overseas          A: 233-176 (5/23/  
 95).                                                              Interests Act.             95)               
H. Res. 164 (6/8/95)  MC..................  H.R. 1530...........  Nat. Defense Auth. FY      PQ: 225-191 A: 233-
                                                                   1996.                      183 (6/13/95)     
H. Res. 167 (6/15/    O...................  H.R. 1817...........  MilCon Appropriations FY   PQ: 223-180 A: 245-
 95).                                                              1996.                      155 (6/16/95)     
H. Res. 169 (6/19/    MC..................  H.R. 1854...........  Leg. Branch Approps. FY    PQ: 232-196 A: 236-
 95).                                                              1996.                      191 (6/20/95)     
H. Res. 170 (6/20/    O...................  H.R. 1868...........  For. Ops. Approps. FY      PQ: 221-178 A: 217-
 95).                                                              1996.                      175 (6/22/95)     
H. Res. 171 (6/22/    O...................  H.R. 1905...........  Energy & Water Approps.    A: voice vote (7/12/
 95).                                                              FY 1996.                   95)               
H. Res. 173 (6/27/    C...................  H.J. Res. 79........  Flag Constitutional        PQ: 258-170 A: 271-
 95).                                                              Amendment.                 152 (6/28/95)     
H. Res. 176 (6/28/    MC..................  H.R. 1944...........  Emer. Supp. Approps......  PQ: 236-194 A: 234-
 95).                                                                                         192 (6/29/95)     
H. Res. 185 (7/11/    O...................  H.R. 1977...........  Interior Approps. FY 1996  PQ: 235-193 D: 192-
 95).                                                                                         238 (7/12/95)     
H. Res. 187 (7/12/    O...................  H.R. 1977...........  Interior Approps. FY 1996  PQ: 230-194 A: 229-
 95).                                                              #2.                        195 (7/13/95)     
H. Res. 188 (7/12/    O...................  H.R. 1976...........  Agriculture Approps. FY    PQ: 242-185 A:     
 95).                                                              1996.                      voice vote (7/18/ 
                                                                                              95)               
H. Res. 190 (7/17/    O...................  H.R. 2020...........  Treasury/Postal Approps.   PQ: 232-192 A:     
 95).                                                              FY 1996.                   voice vote (7/18/ 
                                                                                              95)               
H. Res. 193 (7/19/    C...................  H.J. Res. 96........  Disapproval of MFN to      A: voice vote (7/20/
 95).                                                              China.                     95)               
H. Res. 194 (7/19/    O...................  H.R. 2002...........  Transportation Approps.    PQ: 217-202 (7/21/ 
 95).                                                              FY 1996.                   95)               
H. Res. 197 (7/21/    O...................  H.R. 70.............  Exports of Alaskan Crude   A: voice vote (7/24/
 95).                                                              Oil.                       95)               
H. Res. 198 (7/21/    O...................  H.R. 2076...........  Commerce, State Approps.   A: voice vote (7/25/
 95).                                                              FY 1996.                   95)               
H. Res. 201 (7/25/    O...................  H.R. 2099...........  VA/HUD Approps. FY 1996..  A: 230-189 (7/25/  
 95).                                                                                         95)               
H. Res. 204 (7/28/    MC..................  S. 21...............  Terminating U.S. Arms      A: voice vote (8/1/
 95).                                                              Embargo on Bosnia.         95)               
H. Res. 205 (7/28/    O...................  H.R. 2126...........  Defense Approps. FY 1996.  A: 409-1 (7/31/95) 
 95).                                                                                                           
H. Res. 207 (8/1/95)  MC..................  H.R. 1555...........  Communications Act of      A: 225-156 (8/2/95)
                                                                   1995.                                        
H. Res. 208 (8/1/95)  O...................  H.R. 2127...........  Labor, HHS Approps. FY     A: 323-104 (8/2/95)
                                                                   1996.                                        
H. Res. 215 (9/7/95)  O...................  H.R. 1594...........  Economically Targeted      ...................
                                                                   Investments.                                 
H. Res. 216 (9/7/95)  MO..................  H.R. 1655...........  Intelligence               ...................
                                                                   Authorization FY 1996.                       
----------------------------------------------------------------------------------------------------------------
Codes: O-open rule; MO-modified open rule; MC-modified closed rule; C-closed rule; A-adoption vote; D-defeated; 
  PQ-previous question vote. Source: Notices of Action Taken, Committee on Rules, 104th Congress.               

  Mr. LINDER. Mr. Speaker, I reserve the balance of my time.
  Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. HALL of Ohio asked and was given permission to revise and extend 
his remarks.)
  Mr. HALL of Ohio. Mr. Speaker, I would like to commend my colleague 
from Georgia, Mr. Linder, as well as my colleagues on the other side of 
the aisle for bringing this resolution to the floor.
  House Resolution 215 is an open rule which will allow full and fair 
debate on H.R. 1594, a resolution placing restrictions on economically 
targeted investments in connection with employee benefit plans.
  As my colleague from Georgia has ably described, this rule provides 2 
hours of general debate, equally divided and controlled by the chairman 
and ranking minority member of the Committee on Economic and 
Educational Opportunities.
  Under this rule, germane amendments will be allowed under the 5-
minute rule, the normal amending process in the House. All Members, on 
both sides of the aisle, will have the opportunity to offer amendments. 
I am pleased that the Rules Committee was able to report this rule 
without opposition in a voice vote and I plan to support it.
  Though I support the rule, I want to express opposition to the bill.
  This bill is a solution to a problem which does not exist.
  This bill overturns the Labor Department's Interpretive Bulletin 94-
1, which restates laws and policies regarding economically targeted 
investments for private pension plans. These kinds of investments might 
result in creating jobs, increasing housing, or encouraging small 
businesses.

[[Page H 8739]]

  The policies contained in this bulletin were developed under the 
previous Republican administrations and were continued by the current 
Democratic administration.
  This bulletin does not in any way affect existing legal requirements 
for placing priority on an investment's risk and rate of return. It 
does, however, say, that given comparable investments, pension managers 
can consider other benefits. I think that is common sense.
  In testimony on this bill before the Economic and Educational 
Opportunities Committee in June, a witness representing the pension 
community stated this legislation is not necessary.
  This legislation could make pension managers overly cautious about 
investments that produce collateral benefits. If this happens, we will 
undoubtedly see fewer pension investments creating American jobs. Some 
fear this could make worse the dangerous trend of pension funds being 
invested overseas instead of creating benefits here in the United 
States.
  A number of Democratic amendments were offered in committee to 
improve this bill but they were defeated.
  Mr. Speaker, I urge adoption of this open rule which will permit full 
debate on this bill and allow Members to make additional attempts to 
amend it.
  Mr. Speaker, I yield 3 minutes to the gentleman from California [Mr. 
Martinez].
  Mr. MARTINEZ. Mr. Speaker, I rise in support of this open rule, 
although I will argue against the bill. I certainly appreciate that 
fact that this rule allows for a more extensive debate of the issues 
which have been brought out as this bill has progress through this 
House over the past several months. I believe the debate is important 
to those who feel that there is an inherent danger in economically 
targeted investments, and will put forth arguments to prove that with 
information that I believe is skewed. Their arguments seem to be based 
on assumptions that are questionable at best. Mr. Saxton declared that 
investments in ETI's would cost each American pensioner $43,298 over 30 
years.
  Well, I have had those numbers analyzed and found that they are based 
on economic assumptions that would mean that every pensioner in the 
country would amass $2,075,000 in their pension plan under such an 
assumption, that a loss of $43,298 would represent a loss of 2 percent 
over that time, or less than the amount those same pensioners will be 
charged for their Medicare premiums under some of the current 
Republican proposals being floated.
  Of course, I also learned that the rate of return on regular, 
approved investments would have to be 12 percent over the same 30 
years--which is the rosiest forecast I have ever seen from an 
economist. One of the economists cited in the JEC report has written to 
Mr. Saxton and stated, and I quote

       I applaud your focusing of attention on U.S. pension plan 
     management--we simply cannot afford to do otherwise, as a 
     Nation of rapidly aging Americans. But I disagree with your 
     proposal to prohibit the U.S. Labor Department pension 
     experts from thinking about or discussing so-called 
     economically targeted investments.

  Mr. Speaker, I enter into the Record the letter from economist Olivia 
S. Mitchell, of the Wharton School of the University of Pennsylvania, 
as well as a response to the JEC report.
                                          The Warton School of the


                                   University of Pennsylvania,

                             Philadelphia, PA, September 11, 1995.
     Congressman Jim Saxton,
     House of Representatives, Washington, DC.
       Dear Congressman Saxton: I am the author of one of the 
     three studies cited in a Joint Economic Committee discussion 
     regarding your bill before the U.S. House tomorrow, in which 
     you propose to curtail discussion and analysis of so-called 
     ``economically targeted investments'' by the U.S. Department 
     of Labor.
       I applaud your focusing of attention on U.S. pension plan 
     management--we simply cannot afford to do otherwise, as a 
     nation of rapidly aging Americans. But I disagree with your 
     proposal to prohibit the U.S. Labor Department pension 
     experts from thinking about or discussing so-called 
     economically targeted investments.
       If two investment options are equivalent in terms of risk 
     and return, and a manager must select one, a variety of other 
     assessments will necessarily enter the decision. As 
     researchers and policymakers, we need more analysis of how 
     these other factors influence decision-making, and what their 
     downstream implications are. In order to remain competitive 
     domestically and internationally, we simply cannot prohibit 
     discussion of, and research on, a vitally important question 
     in the pension arena.
       Thank you for your kind consideration.
           Sincerely yours,
     Olivia S. Mitchell.
                                                                    ____

   Response to the ``Substantive Report'' of the JEC on Economically 
                          Targeted Investments

       (``Through the Looking Glass with Representative Saxton'')

       In an irresponsible attempt to unnecessarily frighten 
     current and future pensioners, the ``economists'' at the 
     Joint Economic Committee have concocted an incredible 
     scenario about the potential impact of pension fund 
     investment in Economically Targeted Investments (ETIs). The 
     JBC report concludes that a hypothetical, across the board, 
     investment by pension funds of 5% of their assets in ETIs, 
     would sacrifice nearly $45,000 per participant over 30 years, 
     and would leave the pension system $2.3 trillion underfunded. 
     The assumptions underlying these conclusions are severely 
     flawed.
       If pension funds did what the JEC assumes, that is, year 
     after year select investments that did not produce 
     competitive, market rates of return, they would be violating 
     the fiduciary requirements of ERISA, as delineated in the 
     Interpretive Bulletin on ETIs that is at issue.
       Even if one assumes that pension funds ignored the 
     Interpretive Bulletin and the law and did as Representative 
     Saxton suggests, the JEC report demonstrates how radically 
     inflated the numbers have to get to show any ``harm.'' 
     According to Representative Saxton's arithmetic, the total 
     asset pool of pension funds in 30 years will be $107.7 
     trillion. Approximately 50 million participants holding 
     assets of $107.7 trillion works out to approximately 
     $2,075,000 per participant for retirement. And the 2% 
     shortfall he predicts for funds invested in ETIs will result 
     in the average pensioner having to scrape by on a mere 
     $2,031,000.
       The analysis assumes that pension funds will, on average, 
     earn 12.1% on their investments over the next thirty years 
     and that ETI investments will, on a risk adjusted basis, 
     underperform these by about 2%, or earn about 10%. There are 
     many problems with these assumptions:
       A 12% return annually for 30 years on all of the assets of 
     pension funds is not only beyond the wildest fantasies of any 
     investment manager, but any investment manager claiming such 
     returns, or even the 10% suggested for ETIs, over 30 years, 
     would be laughed out of the business. Assuming such returns 
     for funding purposes, in fact, would be in violation of the 
     recently passed Retirement Protection Act of 1993.
       It is possible that we could see sustained yields of up to 
     12% in the capital markets for thirty years. However, at the 
     real rates of investment returns of the last thirty years, 
     this implies about 8% inflation over the same period. If this 
     occurs, a few dollars in ETIs will be the least of pensioners 
     worries. Perhaps Mr. Saxton knows something we don't about 
     the consequences of the Republican Party's economic policies.
       In the absence of such inflation, if pension funds' assets 
     were to grow by 12% annually over 30 years, they would own 
     virtually all financial assets in the economy. This may come 
     as a surprise to investors like Warren Buffett.
       The assumed 200 basis point underperformances of funds 
     invested in ETIs (a 10% return as versus a 12% return on 
     investments) is based on studies that are either misapplied 
     or have severve flaws, such as inadequate controls and time 
     frames, marginal results, and obsolete or limited data.
  Mr. HALL of Ohio. Mr. Speaker, I yield back the balance of my time.
  Mr. LINDER. Mr. Speaker, I yield back the balance of my time, and I 
move the previous question on the resolution.
  The previous question was ordered.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.

                          ____________________