[Congressional Record Volume 145, Number 64 (Wednesday, May 5, 1999)]
[Senate]
[Pages S4797-S4798]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself and Mr. Breaux):
  S. 960. A bill to amend the Older Americans Act of 1965 to establish 
pension counseling programs, and for other purposes; to the Committee 
on Health, Education, Labor, and Pensions.


             pension assistance and counseling act of 1999

 Mr. GRASSLEY. Mr. President, today I rise to introduce 
legislation to achieve one of my primary objectives as chairman of the 
Special Committee on Aging: to help workers and retirees achieve a 
secure retirement.
  As with any discussion about retirement planning, it is the norm to 
point to the ``three-legged stool'' of retirement--Social Security, 
personal savings, and a pension. Unfortunately, the legs of the stool 
may be getting warped.
  This legislation is the result of a hearing held by the Aging 
Committee in the 105th Congress. The Aging Committee confronted an 
issue that is affecting hundreds of thousands of workers and retirees--
miscalculation of their hard-earned pensions. This hearing was intended 
to raise consumer awareness about the need to be pro-active about 
policing your pension. As one of our witnesses said, ``never assume 
your pension is error-free.''
  While it is impossible to know how many pension payments and lump sum 
distributions may be miscalculated, we know the number is on the rise. 
An audit conducted last Congress by the Pension Benefit Guaranty 
Corporation--focused on plans that were voluntarily terminated--showed 
that the number of people underpaid has increased from 2.8 to 8.2 
percent. Anecdotal evidence suggests that the number of people 
receiving lump sum distributions who end up getting shortchanged could 
be 15 to 20 percent. Those numbers are very disturbing. The practical 
impact is that retirees, and young and old workers alike, are losing 
dollars that they have earned.
  Workers and retirees need to be aware that they are at risk. They can 
help themselves by knowing how their benefits are calculated, that they 
should keep all the documents their employer gives them, and to start 
asking questions at a young age--don't wait until the eve of 
retirement.
  Unfortunately, policing your pension is not easy. Employers are 
trying to do a good job but they are confronted with one of the most 
complex regulatory schemes in the Federal Government. Pensions operate 
in a complex universe of laws, rules, and regulations. Over the last 20 
years, 16 laws have been enacted that require employers to amend their 
pension plans and then notify their workers of changes. It is not a 
simple task. If employers have problems trying to comply with Federal 
requirements, it is understandable that workers and retirees are having 
trouble getting a grasp on how their pension works.
  Trying to educate yourself about pensions implies that someone is out 
there providing information to those who need it. That is where the 
legislation that I am introducing today comes in. People who are 
concerned about their pensions--whether it's an unintentional mistake 
or outright fraud--often don't have anywhere to go for expert advice.
  Fortunately, there is an answer. Already authorized by the Older 
Americans Act, seven pension counseling projects have assisted 
thousands of people around this country with their pension problems. 
These projects provide information and counseling to retirees, and 
young and old workers in a very cost-effective manner.
  Each project received $75,000 of Federal assistance over a 17-month 
period. As is normal for other programs under the Older Americans Act, 
these dollars were supplemented by money raised from private sources. 
During their operation, the projects recovered nearly $2 million in 
pension benefits and payments. That is a return of $4 for every $1 
spent.
  My legislation contains three key provisions: first, it updates the 
Older Americans Act to encourage the creation of more pension 
counseling projects. While 10 projects in 15 states currently exist, 
they are not enough to reach the 80 million people who are covered by 
pensions in this country. Hopefully, more counseling projects can be 
established to provide more regionally comprehensive assistance.
  Second, the legislation would create an 800 number that people could 
call for one-stop advice on where to get assistance. Jurisdiction over 
pension issues is spread across three government agencies--none of 
which are focused on helping individuals with individual problems--
especially if the problem does not seem to be a clear fiduciary breach 
or indicate that there may be criminal wrongdoing. An 800 number 
linking people to assistance will help close that gap.
  Finally, the legislation would transfer authority for the 
demonstration

[[Page S4798]]

projects to Title VII of the Older Americans Act in order to make them 
permanent in nature. They provide a much needed service to workers and 
retirees. These demonstration projects have existed since 1992 and have 
proven to be very successful. However, they have outgrown their pilot-
project beginnings and should become a permanent fixture.
  I want to thank Senator Breaux for his support of this legislation. 
Furthermore, I encourage all of my colleagues to support these projects 
and show their support by co-sponsoring this legislation.
                                 ______