[Congressional Record Volume 163, Number 76 (Wednesday, May 3, 2017)]
[Senate]
[Pages S2688-S2689]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONGRESSIONAL REVIEW ACT RESOLUTION
Mr. HATCH. Mr. President, as we continue this historic effort in
Congress to repeal harmful regulations, I rise today in support of H.J.
Res. 66.
Due to the aggressive regulatory posture taken by the Obama
administration in its final months, Congress has had to spend a
significant portion of time repealing regulations under the
Congressional Review Act, and our level of success has been
unprecedented.
Before 2017, only one CRA resolution had ever been successfully
passed by Congress and signed by the President. If passed and signed,
H.J. Res. 66 would be the 14th CRA resolution enacted this year. That
is remarkable. It is unfortunate that we are in this situation, no
doubt, but our success in rolling back harmful regulations is a
positive step, in my view and in the view of so many others.
There is a growing consensus here in Washington and throughout our
country that the U.S. economy--our workers, businesses, and job
creators--are horribly overregulated. Regulations promulgated by the
executive branch take hundreds of billions of dollars out of our
economy. The resolution before us will repeal a regulation that
President Obama apparently personally ordered Labor Secretary Tom Perez
to draft as a gift to certain blue States.
The regulation eliminated longstanding Federal protections for the
retirement savings of private sector workers, specifically giving
States a ``safe harbor'' from the protection that workers have had for
decades under ERISA if the State requires employers to either set up a
retirement plan or enroll its employees in a State-run plan.
These State plans do not have to be portable, nor do they have to
permit workers to withdraw their savings at any time. States like
California, Oregon, Connecticut, Maryland, and Illinois are already
using this authority to impose new mandates on both large and small
employers, including startup businesses. Some of the mandates apply
regardless of the size of the business.
The regulation not only encourages States to impose conflicting and
burdensome mandates on private sector businesses, but it also
encourages States to bar private workers' access to their retirement
accounts, and it would let States invest private workers' retirement
assets, ignoring provisions in Federal pension law that require prudent
pension investment practices and that ban kickbacks and self-dealing.
Some States have already made it clear that once they take control of
the private worker assets, they intend to invest them just like they
invest their State pension plan assets.
For anyone who is following our Nation's current public pension
crisis, that is not a pretty picture--and that is being kind. Put
simply, States like California and Illinois shouldn't get a pass on
investing potentially billions of dollars in private worker retirement
assets without having to follow Federal rules requiring prudent
investment practices--rules designed to protect retirement nest eggs of
hard-working Americans.
I am all for increasing coverage for employees and workplace
retirement programs. I have been working with my colleagues on both
sides of the aisle to address this issue.
For example, last Congress, the Senate Finance Committee, which I
chair, unanimously approved the Retirement Enhancement and Savings Act
of 2016, a bipartisan bill designed to increase voluntary retirement
savings.
My bill and others like it provide workable, voluntary solutions to
give more workers access to retirement plans. I emphasize the word
``voluntary.'' In America, we have a voluntary defined contribution
retirement system for private businesses, and the voluntary approach
with appropriate incentives for workers and employers is far better
than the one taken by the Obama administration and former Labor
Secretary Tom Perez, which
[[Page S2689]]
would take us down the path toward government-mandated and government-
run retirement plans. That is not really hyperbole. That is essentially
the stated purpose of these types of regulations.
The current retirement savings system clearly demonstrates the
superiority of the free market over government mandates when it comes
to government savings. Private retirement savings vehicles, like
401(k)s and IRAs that have been encouraged but not mandated by Federal
laws have produced nearly $14 trillion in wealth and savings for the
middle class.
Let me repeat that. Private retirement savings vehicles, with
encouragements and investor protections but not mandates, have produced
nearly $14 trillion in wealth and savings for middle-class Americans.
I agree that we need to enhance this system to give more workers
access and incentives to participate, but there is absolutely no
justification for any effort to reinvent the retirement savings system
in order to give primacy to government-run plans. I can only wonder why
States think they will be able to produce better results than the
private retirement savings system, which has been an unqualified
success. I have to wonder how some of my colleagues who value consumer
financial protection, as I do, would want to see abandonment of rules,
under the guise of a safe harbor, that erode protections for the
savings of workers and future retirees.
We can do our part to undo this harmful regulation by passing H.J.
Res 66. Toward that end, I urge all of my colleagues to vote in favor
of this resolution.
Mr. President, I yield the floor.
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