[Congressional Record Volume 143, Number 155 (Friday, November 7, 1997)]
[Senate]
[Pages S12035-S12037]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       THE SAVINGS ARE VITAL TO EVERYONE'S RETIREMENT ACT OF 1997

                                 ______
                                 

                      GRASSLEY AMENDMENT NO. 1612

  Mr. LOTT (for Mr. Grassley) proposed an amendment to the bill (H.R. 
1377) to amend title I of the Employee Retirement Income Security Act 
of 1974 to encourage retirement income savings; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Savings Are Vital to 
     Everyone's Retirement Act of 1997''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds as follows:
       (1) The impending retirement of the baby boom generation 
     will severely strain our already overburdened entitlement 
     system, necessitating increased reliance on pension and other 
     personal savings.
       (2) Studies have found that less than a third of Americans 
     have even tried to calculate how much they will need to have 
     saved by retirement, and that less than 20 percent are very 
     confident they will have enough money to live comfortably 
     throughout their retirement.
       (3) A leading obstacle to expanding retirement savings is 
     the simple fact that far too many Americans--particularly the 
     young--are either unaware of, or without the knowledge and 
     resources necessary to take advantage of, the extensive 
     benefits offered by our retirement savings system.
       (b) Purpose.--It is the purpose of this Act--
       (1) to advance the public's knowledge and understanding of 
     retirement savings and its critical importance to the future 
     well-being of American workers and their families;
       (2) to provide for a periodic, bipartisan national 
     retirement savings summit in conjunction with the White House 
     to elevate the issue of savings to national prominence; and
       (3) to initiate the development of a broad-based, public 
     education program to encourage and enhance individual 
     commitment to a personal retirement savings strategy.

     SEC. 3. OUTREACH BY THE DEPARTMENT OF LABOR.

       (a) In General.--Part 5 of subtitle B of title I of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1131 et seq.) is amended by adding at the end the following 
     new section:


            ``outreach to promote retirement income savings

       ``Sec. 516. (a) In General.--The Secretary shall maintain 
     an ongoing program of outreach to the public designed to 
     effectively promote retirement income savings by the public.
       ``(b) Methods.--The Secretary shall carry out the 
     requirements of subsection (a) by means which shall ensure 
     effective communication to the public, including publication 
     of public service announcements, public meetings, creation of 
     educational materials, and establishment of a site on the 
     Internet.
       ``(c) Information To Be Made Available.--The information to 
     be made available by the Secretary as part of the program of 
     outreach required under subsection (a) shall include the 
     following:
       ``(1) a description of the vehicles currently available to 
     individuals and employers for creating and maintaining 
     retirement income savings, specifically including information 
     explaining to employers, in simple terms, the characteristics 
     and operation of the different retirement savings vehicles, 
     including the steps to establish each such vehicle, and
       ``(2) information regarding matters relevant to 
     establishing retirement income savings, such as--
       ``(A) the forms of retirement income savings,
       ``(B) the concept of compound interest,
       ``(C) the importance of commencing savings early in life,
       ``(D) savings principles,
       ``(E) the importance of prudence and diversification in 
     investing,
       ``(F) the importance of the timing of investments, and
       ``(G) the impact on retirement savings of life's 
     uncertainties, such as living beyond one's life expectancy.
       ``(d) Establishment of Site on the Internet.--The Secretary 
     shall establish a

[[Page S12036]]

     permanent site on the Internet concerning retirement income 
     savings. The site shall contain at least the following 
     information:
       ``(1) a means for individuals to calculate their estimated 
     retirement savings needs, based on their retirement income 
     goal as a percentage of their preretirement income;
       ``(2) a description in simple terms of the common types of 
     retirement income savings arrangements available to both 
     individuals and employers (specifically including small 
     employers), including information on the amount of money that 
     can be placed into a given vehicle, the tax treatment of the 
     money, the amount of accumulation possible through different 
     typical investment options and interest rate projections, and 
     a directory of resources of more descriptive information;
       ``(3) materials explaining to employers in simple terms, 
     the characteristics and operation of the different retirement 
     savings arrangements for their workers and what the basic 
     legal requirements are under this Act and the Internal 
     Revenue Code of 1986, including the steps to establish each 
     such arrangement;
       ``(4) copies of all educational materials developed by the 
     Department of Labor, and by other Federal agencies in 
     consultation with such Department, to promote retirement 
     income savings by workers and employers; and
       ``(5) links to other sites maintained on the Internet by 
     governmental agencies and nonprofit organizations that 
     provide additional detail on retirement income savings 
     arrangements and related topics on savings or investing.
       ``(e) Coordination.--The Secretary shall coordinate the 
     outreach program under this section with similar efforts 
     undertaken by other public and private entities.''.
       (b) Conforming Amendment.--The table of contents in section 
     1 of such Act is amended by inserting after the item relating 
     to section 514 the following new items:

``Sec. 515. Delinquent contributions.
``Sec. 516. Outreach to promote retirement income savings.''.

     SEC. 4. NATIONAL SUMMIT ON RETIREMENT SAVINGS.

       (a) In General.--Part 5 of subtitle B of title I of the 
     Employee Retirement Income Security Act of 1974, as amended 
     by section 3 of this Act, is amended by adding at the end the 
     following new section:


                ``national summit on retirement savings

       ``Sec. 517. (a) Authority To Call Summit.--Not later than 
     July 15, 1998, the President shall convene a National Summit 
     on Retirement Income Savings at the White House, to be co-
     hosted by the President and the Speaker and the Minority 
     Leader of the House of Representatives and the Majority 
     Leader and Minority Leader of the Senate. Such a National 
     Summit shall be convened thereafter in 2001 and 2005 on or 
     after September 1 of each year involved. Such a National 
     Summit shall--
       ``(1) advance the public's knowledge and understanding of 
     retirement savings and its critical importance to the future 
     well-being of American workers and their families;
       ``(2) facilitate the development of a broad-based, public 
     education program to encourage and enhance individual 
     commitment to a personal retirement savings strategy;
       ``(3) develop recommendations for additional research, 
     reforms, and actions in the field of private pensions and 
     individual retirement savings; and
       ``(4) disseminate the report of, and information obtained 
     by, the National Summit and exhibit materials and works of 
     the National Summit.
       ``(b) Planning and Direction.--The National Summit shall be 
     planned and conducted under the direction of the Secretary, 
     in consultation with, and with the assistance of, the heads 
     of such other Federal departments and agencies as the 
     President may designate. Such assistance may include the 
     assignment of personnel. The Secretary shall, in planning and 
     conducting the National Summit, consult with the 
     congressional leaders specified in subsection (e)(2). The 
     Secretary shall also, in carrying out the Secretary's duties 
     under this subsection, consult and coordinate with at least 
     one organization made up of private sector businesses and 
     associations partnered with Government entities to promote 
     long-term financial security in retirement through savings.
       ``(c) Purpose of National Summit.--The purpose of the 
     National Summit shall be--
       ``(1) to increase the public awareness of the value of 
     personal savings for retirement;
       ``(2) to advance the public's knowledge and understanding 
     of retirement savings and its critical importance to the 
     future well-being of American workers and their families;
       ``(3) to facilitate the development of a broad-based, 
     public education program to encourage and enhance individual 
     commitment to a personal retirement savings strategy;
       ``(4) to identify the problems workers have in setting 
     aside adequate savings for retirement;
       ``(5) to identify the barriers which employers, especially 
     small employers, face in assisting their workers in 
     accumulating retirement savings;
       ``(6) to examine the impact and effectiveness of individual 
     employers to promote personal savings for retirement among 
     their workers and to promote participation in company savings 
     options;
       ``(7) to examine the impact and effectiveness of government 
     programs at the Federal, State, and local levels to educate 
     the public about, and to encourage, retirement income 
     savings;
       ``(8) to develop such specific and comprehensive 
     recommendations for the legislative and executive branches of 
     the Government and for private sector action as may be 
     appropriate for promoting private pensions and individual 
     retirement savings; and
       ``(9) to develop recommendations for the coordination of 
     Federal, State, and local retirement income savings 
     initiatives among the Federal, State, and local levels of 
     government and for the coordination of such initiatives.
       ``(d) Scope of National Summit.--The scope of the National 
     Summit shall consist of issues relating to individual and 
     employer-based retirement savings and shall not include 
     issues relating to the old-age, survivors, and disability 
     insurance program under title II of the Social Security Act.
       ``(e) National Summit Participants.--
       ``(1) In general.--To carry out the purposes of the 
     National Summit, the National Summit shall bring together--
       ``(A) professionals and other individuals working in the 
     fields of employee benefits and retirement savings;
       ``(B) Members of Congress and officials in the executive 
     branch;
       ``(C) representatives of State and local governments;
       ``(D) representatives of private sector institutions, 
     including individual employers, concerned about promoting the 
     issue of retirement savings and facilitating savings among 
     American workers; and
       ``(E) representatives of the general public.
       ``(2) Statutorily required participation.--The participants 
     in the National Summit shall include the following 
     individuals or their designees:
       ``(A) the Speaker and the Minority Leader of the House of 
     Representatives;
       ``(B) the Majority Leader and the Minority Leader of the 
     Senate;
       ``(C) the Chairman and ranking Member of the Committee on 
     Education and the Workforce of the House of Representatives;
       ``(D) the Chairman and ranking Member of the Committee on 
     Labor and Human Resources of the Senate;
       ``(E) the Chairman and ranking Member of the Special 
     Committee on Aging of the Senate;
       ``(F) the Chairman and ranking Member of the Subcommittees 
     on Labor, Health and Human Services, and Education of the 
     Senate and House of Representatives; and
       ``(G) the parties referred to in subsection (b).
       ``(3) Additional participants.--
       ``(A) In general.--There shall be not more than 200 
     additional participants. Of such additional participants--
       ``(i) one-half shall be appointed by the President, in 
     consultation with the elected leaders of the President's 
     party in Congress (either the Speaker of the House of 
     Representatives or the Minority Leader of the House of 
     Representatives, and either the Majority Leader or the 
     Minority Leader of the Senate; and
       ``(ii) one-half shall be appointed by the elected leaders 
     of Congress of the party to which the President does not 
     belong (one-half of that allotment to be appointed by either 
     the Speaker of the House of Representatives or the Minority 
     Leader of the House of Representatives, and one-half of that 
     allotment to be appointed by either the Majority Leader or 
     the Minority Leader of the Senate).
       ``(B) Appointment requirements.--The additional 
     participants described in subparagraph (A) shall be--
       ``(i) appointed not later than January 31, 1998;
       ``(ii) selected without regard to political affiliation or 
     past partisan activity; and
       ``(iii) representative of the diversity of thought in the 
     fields of employee benefits and retirement income savings.
       ``(4) Presiding officers.--The National Summit shall be 
     presided over equally by representatives of the executive and 
     legislative branches.
       ``(f) National Summit Administration.--
       ``(1) Administration.--In administering this section, the 
     Secretary shall--
       ``(A) request the cooperation and assistance of such other 
     Federal departments and agencies and other parties referred 
     to in subsection (b) as may be appropriate in the carrying 
     out of this section;
       ``(B) furnish all reasonable assistance to State agencies, 
     area agencies, and other appropriate organizations to enable 
     them to organize and conduct conferences in conjunction with 
     the National Summit;
       ``(C) make available for public comment a proposed agenda 
     for the National Summit that reflects to the greatest extent 
     possible the purposes for the National Summit set out in this 
     section;
       ``(D) prepare and make available background materials for 
     the use of participants in the National Summit that the 
     Secretary considers necessary; and
       ``(E) appoint and fix the pay of such additional personnel 
     as may be necessary to carry out the provisions of this 
     section without regard to provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service, and without regard to chapter 51 and subchapter III 
     of chapter 53 of such title relating to classification and 
     General Schedule pay rates.
       ``(2) Duties.--The Secretary shall, in carrying out the 
     responsibilities and functions of the Secretary under this 
     section, and as part of the National Summit, ensure that--

[[Page S12037]]

       ``(A) the National Summit shall be conducted in a manner 
     that ensures broad participation of Federal, State, and local 
     agencies and private organizations, professionals, and others 
     involved in retirement income savings and provides a strong 
     basis for assistance to be provided under paragraph (1)(B);
       ``(B) the agenda prepared under paragraph (1)(C) for the 
     National Summit is published in the Federal Register; and
       ``(C) the personnel appointed under paragraph (1)(E) shall 
     be fairly balanced in terms of points of views represented 
     and shall be appointed without regard to political 
     affiliation or previous partisan activities.
       ``(3) Nonapplication of faca.--The provisions of the 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the National Summit.
       ``(g) Report.--The Secretary shall prepare a report 
     describing the activities of the National Summit and shall 
     submit the report to the President, the Speaker and Minority 
     Leader of the House of Representatives, the Majority and 
     Minority Leaders of the Senate, and the chief executive 
     officers of the States not later than 90 days after the date 
     on which the National Summit is adjourned.
       ``(h) Definition.--For purposes of this section, the term 
     `State' means a State, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Commonwealth of the Northern 
     Mariana Islands, Guam, the Virgin Islands, American Samoa, 
     and any other territory or possession of the United States.
       ``(i) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     for fiscal years beginning on or after October 1, 1997, such 
     sums as are necessary to carry out this section.
       ``(2) Authorization to accept private contributions.--In 
     order to facilitate the National Summit as a public-private 
     partnership, the Secretary may accept private contributions, 
     in the form of money, supplies, or services, to defray the 
     costs of the National Summit.
       ``(j) Financial Obligation for Fiscal Year 1998.--The 
     financial obligation for the Department of Labor for fiscal 
     year 1998 shall not exceed the lesser of--
       ``(1) one-half of the costs of the National Summit; or
       ``(2) $250,000.
     The private sector organization described in subsection (b) 
     and contracted with by the Secretary shall be obligated for 
     the balance of the cost of the National Summit.
       ``(k) Contracts.--The Secretary may enter into contracts to 
     carry out the Secretary's responsibilities under this 
     section. The Secretary shall enter into a contract on a sole-
     source basis to ensure the timely completion of the National 
     Summit in fiscal year 1998.''.
       (b) Conforming Amendment.--The table of contents in section 
     1 of such Act, as amended by section 3 of this Act, is 
     amended by inserting after the item relating to section 516 
     the following new item:

``Sec. 517. National Summit on Retirement Savings.''.

                          ____________________