[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Extensions of Remarks]
[Page 4928]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      PENSION SECURITY ACT OF 2002

                                 ______
                                 

                               speech of

                             HON. TOM UDALL

                             of new mexico

                    in the house of representatives

                        Thursday, April 11, 2002

  Mr. UDALL of New Mexico. Mr. Speaker, I rise today in opposition to 
H.R. 3762, the so-called Pension Security Act of 2002. As we all 
learned as a result of the monumental collapse of Enron, our pension 
system needs to be fixed to ensure that Americans' retirement savings 
are protected.
  This bill brought before us today, however, does not ensure this 
protection. What it does ensure is political cover for the majority so 
they appear to be protecting people's retirement savings while not 
creating friction with their corporate allies.
  H.R. 3762 doesn't really solve the problems we witnessed last year 
from the Enron debacle. The majority's bill still restricts employees 
from selling existing company stock in their pension accounts during 
the five-year phase-in, and requires them to hang on to employer stock 
for three years after it is contributed. While employees are restricted 
during this time, however, company executives would still be free to 
trade their own stock as they wished.
  The substitute bill, which I support, has no such five-year phase-in 
and allows employees to sell employer stock immediately, once they have 
been in the plan for three years. The substitute also ensures that 
employees will know, within three days, when executives are dumping 
large amounts of their company stock. Ken Lay used loopholes in 
securities laws to delay disclosure of sales of millions of dollars of 
company stock. Had employees known about these sales, they may have 
decided not to continue to purchase Enron stock. The substitute ensures 
that such information could not be kept from employees. Also, the 
substitute holds executives accountable for selling company stock in 
their special pension accounts by including stiff new criminal 
penalties for violations.
  H.R. 3762 also allows companies to offer workers investment advice, 
even if there is a clear conflict of interest. For example, an 
investment management company could serve as both the investment 
advisor and the plan manager chosen by the company.
  I urge my colleagues to oppose H.R. 3672, support the substitute, and 
help protect the savings of hard-working Americans. The Pension 
Security Act of 2002 is nothing more than lip service to protecting 
pensions. 15,000 Enron employees lost more than $1.3 billion. Clearly 
this calls for Congress to provide real security and real pension 
protection and reform of the system that allowed Enron officials to 
pull the sheets over the eyes of their employees. That is what the 
Rangel/Miller substitute does and that is the bill I will support. 
Thank you.

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