[Congressional Record Volume 148, Number 42 (Tuesday, April 16, 2002)]
[Extensions of Remarks]
[Page E542]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      IN OPPOSITION TO H.R. 3762, THE PENSION SECURITY ACT OF 2002

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                               speech of

                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                        Thursday, April 11, 2002

  Mrs. MINK of Hawaii. Mr. Speaker, I rise in opposition to H.R. 3762, 
the Pension Security Act.
  Enron employees lost over $1 billion in retirement funds. Congress 
needs to pass legislation to help prevent this from ever happening 
again.
  Unfortunately, H.R. 3762 does nothing to protect pension plans. This 
bill fails to give employees the right to sit on pension boards and 
manage their own retirement assets. 29 Enron executives dumped $1.1 
billion of their stock to avoid the losses faced by rank and file 
employees, but the bill fails to give employees notification when 
executives are dumping company stock. 85% of all employers with pension 
plans currently restrict their employee's ability to diversify, but the 
bill fails to allow employees to diversify their 401 (k) pension plans.
  The Pension Security Act offers no protection for employees. It 
actually increases their risks. The bill will allow unqualified 
individuals to provide investment advice. These investment advisors may 
be connected with investment companies who benefit from the advice. 
Advisors should not receive financial rewards for recommending certain 
investments over others. This is a clear conflict of interest that will 
hurt an employee.
  We should commit ourselves to giving employees the right to truly 
control their retirement plans and give them the legal mechanisms for 
punishing those responsible for negligence and fraud. We must modernize 
ERISA so employees can be made whole and help ensure that average 
employees and corporate executives abide by the same rules.
  The Democratic substitute does this by toughening criminal penalties 
for fiduciaries who violate workers' pension rights. It prohibits 
executives from dumping stock if the company's rank and file employees 
are prohibited from selling their stock due to a lockout. The 
Democratic substitute gives employees the right to diversify company-
matched stock after 3 years, and it provides for independent financial 
advice for employees when company stock is offered as an investment 
option under a retirement plan.
  I urge my colleagues to vote for the substitute and against H.R. 
3762.

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