[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[House]
[Pages H10543-H10548]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         SAVINGS ARE VITAL TO EVERYONE'S RETIREMENT ACT OF 1997

  Mr. FAWELL. Mr. Speaker, I move to suspend the rules and concur in 
the Senate 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.
  The Clerk read as follows:

       Senate amendment:
       Strike out all after the enacting clause and insert:

     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

[[Page H10544]]

     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 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;

[[Page H10545]]

       ``(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--
       ``(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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois [Mr. Fawell] and the gentleman from New Jersey [Mr. Payne] 
each will control 20 minutes.
  The Chair recognizes the gentleman from Illinois [Mr. Fawell].
  Mr. FAWELL. Mr. Speaker, I am very pleased to join with my colleague, 
the gentleman from New Jersey [Mr. Payne], the ranking Democrat on the 
Subcommittee on Employer-Employee Relations, as well as many other 
Democrats and Republicans across the political spectrum, in sponsoring 
the SAVER Act. H.R. 1377 represents bipartisan legislation addressing a 
critical national problem, the lack of individual retirement savings.
  I do want to make special mention of the fact that the gentleman from 
New Jersey [Mr. Payne] has been very cooperative. We have worked 
together in good bipartisan fashion, and I do very much appreciate the 
gentleman from New Jersey and the fine work that he has put in on this 
legislation. Without the gentleman, there simply would not be any such 
legislation.
  The SAVER Act was initially passed by the House back in May. On 
November 7, the Senate passed SAVER with minor modifications made to 
secure the support of the Department of Labor. I would like to thank 
Senate sponsor Senator Charles Grassley, the chairman of the Committee 
on Aging, for his efforts in guiding this legislation through the other 
chamber.
  The SAVER Act is truly a bipartisan initiative, supported not only by 
the Department of Labor, but also by a diverse group of organizations, 
from the U.S. Chamber of Commerce to the American Association of 
Retired Persons.
  Mr. Speaker, America faces a ticking demographic time bomb that 
requires increased retirement savings. The Savings are Vital to 
Everyone's Retirement Act, or the SAVER Act, is the first step in 
defusing the retirement time bomb. The SAVER Act initiates projects to 
educate American workers about retirement savings and convenes a 
national summit on retirement savings at the White House.
  Through this bill, we facilitate a public-private partnership to 
educate the public on this serious and underreported national problem. 
Workers need to know the importance of saving for the future and of 
saving as early in life as possible.
  As a survey released this year by the Employee Benefit Research 
Institute, known as EBRI, reveals, there is a lot of work to be done. 
Less than one-third of Americans have even tried to calculate how much 
they need to have saved by retirement. Furthermore, less than 20 
percent are very confident they will be able to have enough money to 
live comfortably throughout their retirement. The lack of adequate 
retirement savings will only become a more pressing problem as the 
baby-boomers begin to retire.
  Far too few Americans, particularly the young, have either the 
knowledge or the resources necessary to take advantage of the extensive 
benefits offered by our retirement savings system. We know the old 
adage that you feed someone for life by teaching them to fish. We need 
to apply this principle to retirement savings.
  The same EBRI survey found while only a quarter of workers express 
confidence in their ability to map out a savings strategy, an 
encouraging 50 percent said they would stick to a plan, if they only 
had one.
  We have to find ways to get the information and the skills out to the 
workers of America to harness this latent energy. The SAVER Act directs 
the Department of Labor to maintain an ongoing program of education and 
outreach to the public through public service announcements, public 
meetings, creation of educational materials, and establishment of a 
site on the Internet.
  The information to be made available will include a means for 
individuals to calculate their estimated retirement savings needs, a 
plain English description of the common types of retirement savings 
arrangements currently available to both individuals and employers, and 
an explanation for employers, hopefully in simple terms, of how to 
establish different retirement savings arrangements for their workers.
  The SAVER Act also convenes a national summit on retirement savings 
at the White House, cohosted by the executive and the legislative 
branches, to be held by July 15, 1998, and again in the year 2001, and 
again in the year 2005. The national summit would advance the public's 
knowledge and understanding of retirement savings and facilitate the 
development of a broad-based public education program, identify the 
barriers which hinder workers from setting aside adequate savings for 
retirement and impede employers, especially small employers, from 
assisting workers in accumulating retirement savings, and develop 
specific recommendations for legislative, executive, and private sector 
actions to promote retirement savings among American workers.
  Mr. Speaker, the national summit would bring together experts in the 
field of employee benefits and retirement savings, key leaders of 
government, and interested parties from the private sector and the 
general public. The delegates would be selected by the congressional 
leadership and the President and would represent the diversity of 
thought in the field without regard to their political affiliation.
  The national summit would be a public-private partnership receiving 
substantial funding from private sector contributions. I hope that the 
SAVER Act can be a first step in a truly bipartisan effort to reverse 
the long course of neglect of this vital issue and help American 
workers better prepare for a comfortable and a secure retirement.
  I urge my colleagues to vote for passage of the SAVER Act and vote to 
help defuse the retirement time bomb.

[[Page H10546]]

  Mr. Speaker, I reserve the balance of my time.
  Mr. PAYNE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank you for this opportunity to speak to the 
importance of the SAVER Act. I think it will provide a big first step 
towards greater awareness about retirement security for all Americans.
  I wish to commend Chairman Fawell for his effort to bring to the 
attention of all of us this very important issue that affects millions 
of Americans. This legislation has been skillfully moved through our 
subcommittee and the full committee, and I appreciate the chairman for 
his fine work on this very important piece of legislation.
  I would also like to commend Senator John Breaux from Louisiana who 
also worked on the other side of the House.
  The retirement clock is running out, as has been mentioned by the 
chairman, for millions of Americans and their families. After a 
lifetime of hard work and contributing to and building our society, 
millions of older Americans have retired and are not prepared for it. 
We have always heard that the future belongs to those who are prepared 
for it. Many of our older Americans are not and will not be. They 
cannot afford to pay their bills.
  While we have worked closely with the administration to make gains in 
strengthening protection for plan participants in the last 4 years, we 
still have miles to go in ensuring retirement security for the American 
work force.
  Half of all older Americans have incomes of less than $11,300. This 
is because their incomes are primarily drawn from Social Security, 
which on average pays $8,460 to retired workers. That is less than 
today's minimum wage. Very little of their income comes from individual 
savings. A very alarming picture painted by the statistics is that many 
of the people we need to reach out to are women and minorities. As you 
know, there is a direct correlation between pension adequacy and the 
wages that workers receive. This is because many employers base their 
pension benefits on the worker's wages.
  This is true with respect to defined contributions and defined 
benefit plans, including 401(k) plans. A very disturbing image forms 
when we begin to think about the retirement security of low-wage 
workers, particularly women and minorities. Many of these workers will 
never receive a pension. We know that less than half of all working 
women are covered by a pension. Those who are fortunate enough to be 
covered by a plan can expect to receive lower benefits in retirement 
because their wages were lower during the time they were working.
  A recent study noted an alarming trend in private pension coverage 
among African American and Latino people. This study suggests that many 
minority workers will become strictly dependent on Social Security and 
have a shrinking chance to enjoy financially comfortable retirements.
  Moreover, the report shows that the percentage of blacks covered by 
private pensions of all types plummeted from 45.1 percent in 1979 to 
33.8 percent in 1993, only one-third of the population, while the 
Latino coverage fell from 37.7 percent to 24.6 percent, less than 25 
percent, during that same period.
  I am hopeful the SAVER Act will be successful in reaching these 
workers. Many of them live in my district, but let me point out, they 
do not all live in my district, they live in your hometowns too. They 
may even be your friends or members of your family. Millions of people 
will not have any significant retirement income beyond Social Security, 
which makes the Federal program even more critical, especially at a 
time when its fiscal future is being questioned.
  While the baby-boom generation is on the eve of retirement, this 
statistical snapshot of the next generation of retirees is fueling the 
current debate about Social Security. I believe the provisions in the 
SAVER Act will provide more opportunities to better educate and prepare 
Americans for their retirement. Today, Mr. Chairman, I hope that this 
is the beginning of developing real solutions to problems that affect 
real people.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FAWELL. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Pennsylvania [Mr. Goodling], the chairman of the 
Committee on Education and the Workforce.
  Mr. GOODLING. Mr. Speaker, I thank the gentleman for yielding me 
time.
  (Mr. GOODLING asked and was given permission to revise and extend his 
remarks.)
  Mr. GOODLING. Mr. Speaker, we are here today to an address in a 
bipartisan fashion the real demographic time bomb that faces the 
American work force, and I thank the gentleman from Illinois, our 
chairman [Mr. Fawell], and the gentleman from New Jersey, the ranking 
member [Mr. Payne], for bringing this legislation before us.
  Workers are not saving adequately for their retirement, and this 
problem will only become more profound as the baby-boom generation 
continues to age. It does not take a mathematician to recognize that in 
the future retiring Americans will have to rely less on Social Security 
and more on pensions and other personal savings.

                              {time}  2130

  Diffusing the retirement time bomb requires immediate action. 
Educating American workers is the critical first step. Savings are 
vital to everyone's Retirement Act of 1997, the SAVER Act is that step.
  The SAVER Act initiates projects to educate American workers about 
retirement savings and convenes a national summit on retirement 
savings. I am pleased to join with my colleagues from across the aisle, 
both in this body and in the other body, to support this important 
initiative.
  I am also pleased by the support of organizations representing the 
older Americans, the business community and the financial community 
behind this public-private partnership.
  Far too few workers, especially the young, understand the importance 
of saving for retirement. Many small businesses are confused as to how 
to set up some of the new retirement saving vehicles created by 
Congress, or they do not know how to go about encouraging their workers 
to take advantage of them.
  The SAVER Act creates a statutory mandate for the Department of Labor 
to help inform American workers about retirement savings, to give them 
the tools they need to take advantage of the many existing benefits of 
our retirement system. The SAVER Act also hopes to focus greater public 
awareness on the lack of retirement savings by convening a national 
summit at the White House. The summit would be a bipartisan undertaking 
of both the executive and legislative branches and bring together 
employee benefit experts from throughout the country.
  The SAVER Act seeks to enlist business and other concerned private 
groups as equal partners in this undertaking and looks to them to pick 
up their share of the tab as well. Ultimately, we all have a stake in 
the success of this project. Continuing to educate our workers is not 
only crucial to Americans having successful careers, it is also vital 
to ensuring they have secure retirements.
  Mr. Speaker, I would also like to take this opportunity to say thank 
you to a longtime aide of mine who will be leaving the Committee on 
Education and the Workforce in the next few weeks. Randy Johnson has 
overseen, as our Workforce Policy Coordinator, all of the business, 
labor and workplace issues that have come before our committee since we 
have been in the majority. And for more than half a decade before that, 
he served as our labor counsel while we were in the minority.
  Randy has been interested in labor issues since law school, when he 
researched the United Mine Workers contract negotiations. His ability 
to understand the negotiation process has served as well. Having worked 
in the Department of Labor before was a real plus for us. Both when we 
were in the minority and now, Randy has known how to stay true to his 
principles and yet accomplish our goals of reforming the American 
workplace. He has a keen understanding of the issues, an astute sense 
of timing, and a determination to achieve success. I and the rest of 
our majority Members could not have asked for a better staff member to 
lead the charge.

[[Page H10547]]

  I will miss his quiet determination, his strong convictions to our 
Republican principles, and his hours and hours of dedication to 
advancing our agenda. We all wish him well and remind him he cannot 
come up and try to influence members of the committee for 1 year.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PAYNE. Mr. Speaker, I yield 4 minutes to the gentleman from North 
Dakota [Mr. Pomeroy].
  Mr. POMEROY. Mr. Speaker, I want to thank the gentleman from Illinois 
[Mr. Fawell], the chairman, and the gentleman from New Jersey [Mr. 
Payne], ranking member, for their work on this legislation. I am proud 
to be its cosponsor, and I think that as we enact this bill, we will be 
making a very positive contribution to what truly is one of our growing 
national matters of urgency: Retirement savings.
  We are embarking, as we know, on an important debate on Social 
Security, but regardless of wherever that debate may take us, one thing 
is crystal clear. We have to save more. We have got to save more. Our 
savings rate is one-half of what it was in the post-World War II 
through 1980 period of time. If we think about the worker to retiree 
ratio, 42 workers per Social Security retiree in the 1940s, heading to 
3 workers per retiree in 20 years, 2 workers per retiree in 30 years. 
It is just so clear, we have to save more.
  Add in longevity. Unlike the 1930s, when Social Security came on 
line, now workers live, on average, 17 years longer in retirement than 
they did at that time. We have to save more. We will not be able to 
publicly fund our way out of this one. It is going to require a 
significant measure of personal responsibility for us all, and that is 
why this bill is so important.
  A critical part of helping people achieve their goal of economic 
security in retirement is getting them on track with a savings plan to 
get them there, and let us face it. We can all use some help in that 
regard.
  Education is a critical part of helping people understand the steps 
they must take now so that they have a secure retirement tomorrow. We 
know that in the workplace where there are work-based retirement 
savings plans and educational programs occurring in that place of 
employment, people attend, they respond, and it improves their savings 
program significantly. The problem is, less than half of all workers 
have work-based retirement savings plan, a goal we must work on. But in 
addition, we must, like this bill accomplishes, get the savings 
programs out to those not necessarily learning about savings at their 
workplace. This is going to advance retirement savings for everyone.
  Charge the Labor Department to continue their good work. It will help 
us reach those that are not learning about retirement savings in their 
place of employment; it will charge the Labor Department to continue 
the work they are already advancing in education relative to retirement 
savings; it will convene the White House summits which will focus 
national attention on this critical issue.
  Mr. Speaker, in closing, I again want to thank the ranking member and 
the chairman. The chairman has indicated he will not be seeking 
reelection. His contributions, as those of us who know, who have served 
with him, will continue long after his presence is in this Chamber, and 
I would like to think that passing his legislation tonight will put on 
track an important course of education, leaving the chairman's imprint 
on our very positive step forward in the goal of retirement savings.
  Mr. FAWELL. Mr. Speaker, I yield myself such time as I may consume. I 
thank the gentleman from North Dakota [Mr. Pomeroy] for his fine 
comments and his contributions in the area of pensions.
  I do want to say also, just briefly, the gentleman from Pennsylvania 
[Mr. Goodling] mentioned Randy Johnson, who is actually seated right 
behind me here. We have worked together for quite a number of years, 
and this gentleman is in charge of the areas of labor law, which is 
something that puts a lot of people to sleep. We need a good lawyer 
with a good mind to keep track of all of the ins and outs of that area, 
and Randy has done that dutifully, and then going over into health 
care, the ERISA statute, which really puts people to sleep, and then 
into the pension area of the ERISA law.
  All of this is very, very vital stuff, and when we have the kind of 
staff people like Randy Johnson, who, unfortunately, has been picked 
off by a head hunter, so he will be around in the Washington area. I 
think maybe after a year is over he probably is going to be coming back 
and visiting us and saying some things. I believe it is not out of 
order to say he is going with the National Chamber of Commerce, so we 
will probably be seeing him around and we wish him nothing but the 
very, very best. It was a great occasion, and I myself will be 
retiring. I trust that I have made retirement plans that I can cover 
those years of retirement.
  Mr. Speaker, I yield back the balance of my time.
  Mr. PAYNE. Mr. Speaker, I yield 3 minutes to the gentleman from 
Maryland [Mr. Cardin].
  Mr. CARDIN. Mr. Speaker, let me thank my friend the gentleman from 
New Jersey [Mr. Payne] for yielding me this time.
  I want to congratulate the gentleman from Illinois [Mr. Fawell] and 
the gentleman from New Jersey [Mr. Payne] for bringing forward this 
bill. I think the title really says it all. The title: ``Savings Are 
Vital to Everyone's Retirement.''
  For two decades we have seen America see savings rates lag far behind 
the industrial nations of this world. This is very troublesome to all 
of us as we look at the economic growth of our Nation. In the last 
couple of years we have seen an encouraging sign, and that is the 
budget deficit of this country has gotten smaller, and the deficit was 
one of the major problems contributing to the low savings rates of our 
Nation. Low savings rates also present major problems for families 
looking ahead to retirement.
  In recent years, many of us in Congress have worked on a bipartisan 
basis on creating new incentives to encourage Americans to save. I saw 
my friend the gentleman from Ohio [Mr. Portman] on the floor a little 
bit earlier. He has worked on issues with me. We need to do more to 
encourage retirement savings in this Nation. We have to reverse the 
trend of less funds being put aside for retirement.
  Those efforts have included major pension simplification legislation, 
including the creation of simple accounts to help small businesses 
create pension plans, and expansions of IRA accounts. While these 
legislative initiatives have begun to show benefits in expanding 
pension coverage and retirement savings, we must do more.
  The backbone of our national retirement policy is the Social Security 
system. But the Social Security system in the long term has significant 
shortfalls in its funding. We must preserve the viability of Social 
Security, while encouraging Americans to augment their retirement 
savings outside of that program. The bill before us will help raise the 
visibility of this critical issue.
  Under Secretary Hermann and former Secretary Reich, the Department of 
Labor has expanded its efforts to protect retirement savings of working 
Americans and to increase public awareness of the need to make adequate 
provisions for a secure retirement.
  H.R. 1377 will strengthen those efforts by requiring a national 
summit on retirement savings to be held at the White House, which will 
provide the impetus for a full-blown national discussion on retirement 
policies.
  Again, I commend the gentleman from Illinois [Mr. Fawell], and I 
commend the gentleman from New Jersey [Mr. Payne]. This is important 
legislation, and I encourage my colleagues to support it.
  Mr. PAYNE. Mr. Speaker, I yield myself such time as I may consume to 
say that I would like to once again thank the chairman for this very 
important legislation.
  As a whole, Americans are motivated to set aside for their 
retirement. However, they are uninformed and uneducated in many 
instances about their options. Furthermore, many Americans nearing 
retirement are worried about whether or not the benefits they have been 
promised will be there when they retire. Corporate mergers and 
downsizing to meet the bottom line by encouraging early retirement 
among older workers may compromise

[[Page H10548]]

the integrity of these promised benefits. This is especially true among 
minority and women workers. Improving awareness and education is a good 
first step in reconciling the need of social insurance, providing 
social protection with individual responsibility.
  Again, I applaud the gentleman from Illinois [Mr. Fawell] for his 
leadership on this issue, and I look forward to working with him to 
provide retirement security for all Americans and their families. I too 
would like to wish him well in his retirement from this House for much 
of the outstanding work that he has done, and I urge my colleagues to 
support H.R. 1377, Savings Are Vital to Everyone's Retirement Act.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Lazio). All time has expired.
  The question is on the motion offered by the gentleman from Illinois 
[Mr. Fawell] that the House suspend the rules and concur in the Senate 
amendment to the bill, H.R. 1377.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate amendment was 
concurred in.
  A motion to reconsider was laid on the table.

                          ____________________