[Congressional Record Volume 148, Number 42 (Tuesday, April 16, 2002)]
[Extensions of Remarks]
[Page E534]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      PENSION SECURITY ACT OF 2002

                                 ______
                                 

                               speech of

                      HON. RODNEY P. FRELINGHUYSEN

                             of new jersey

                    in the house of representatives

                        Thursday, April 11, 2002

  Mr. FRELINGHUYSEN. Mr. Speaker, today, I rise in strong support of 
H.R. 3762 the Pension Security Act of 2002. I believe the time to 
update Federal pension law is now! I also believe this legislation 
could have prevented the tragic financial consequences of the Enron 
collapse, which is why I strongly support H.R. 3762.
  This legislation will help ensure the safety of the American workers' 
pension fund savings through the following ways:
  First, this legislation holds businesses to a higher standard of 
accountability. Specifically, it clarifies that company pension 
officials who do not act in the best interests of pension 
beneficiaries, can be held liable for breaching their fiduciary duty; 
it requires that workers be given 30 days advance notice of any 
blackout period affecting their pensions; and it forbids employers to 
sell their stock during ``black out'' periods when employees are not 
permitted to sell their stock. Thus, this legislation ensures that the 
Ken Lay's of the world, do not get rich at the expense of the American 
workers' pension fund savings.
  Second, this legislation empowers the American worker by protecting 
employees against future abuses by giving them more control over their 
investments. Specifically, the American worker is empowered with the 
right to diversify employer stock contributions and the option to sell 
company stock three years after receiving it.
  Third, this legislation also empowers the American worker by 
increasing their access to quality investment advice and by providing 
them with more information about their pensions. Specifically, it 
encourages employers to make investment advice available to their 
employees; it allows workers to use a tax-free payroll deduction to 
purchase investment advice on their own; and it requires companies to 
give quarterly reports that include account information, as well as 
their rights to diversify.
  Notably, the Democrat's alternative for pension reform does not 
address the current shortcomings in the pension system. Instead, the 
Democratic alternative increases mandates and regulations that will 
result in increased costs, which will ultimately discourage employers 
from offering retirement plans altogether.
  Finally, this legislation will help restore confidence in America's 
pension fund system.
  A generation of American workers have enjoyed a safe and secure 
retirement. By passing H.R. 3762 today, we will ensure future 
generations enjoy the same safe and secure retirement.

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