    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [October 7, 1999]
    [Pages 1711-1712]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Proposed Legislation To Protect Pensions
    October 7, 1999

        I commend Senators Moynihan,
    Jeffords, Leahy, Robb, Kerrey, and Rockefeller
    and Representatives Matsui, Weller, Andrews,
    Gejdenson, Pomeroy,
    Bentsen, and Kelly for
    introducing the ``Pension Reduction Disclosure Act of 1999.'' This
    important new legislation, developed in partnership with my
    administration, will secure the right-to-know for American workers when
    changes are being made to their private pension retirement benefits. I
    applaud the leadership of these Members of Congress in furthering or
    effort to protect the retirement security of American workers and look
    forward to working with them to achieve speedy enactment of this
    legislation.
        Our voluntary, employment-based pension system plays a critical role
    in providing income security for American workers in retirement.
    Increasingly, employers are converting traditional, employer-sponsored
    defined benefit plans to cash balance and other new types of pension
    plans. While these new types of pension plans may provide enhanced
    benefits for some workers, they also could result in other workers
    having smaller pensions at retirement than they would have if their old
    plan had continued.
        Unfortunately, too few workers understand the effects of these
    conversions. Too many workers today are left in the dark about changes
    to their retirement plan. In fact, under some new plans, some workers
    may not even realize that they have temporarily stopped earnings any
    benefits at all. This is not right. It needs to be changed.
        This legislation would ensure that all Americans have the necessary
    information to plan for retirement. It would provide workers with
    meaningful and timely notice of plan changes and clearly demonstrate the
    impact of those changes now and in the future. It would shine sunlight
    on changes in retirement benefits. And it would do this without unduly
    burdening employers. It is truly a smart, commonsense measure, and
    Congress should pass it.
        The sponsoring Members and my administration worked closely together
    to develop this proposal. I am grateful to Labor Secretary Alexis
    Herman, Treasury Secretary Larry
    Summers, and National Economic Council
    Director Gene

    [[Page 1712]]

    Sperling for their hard work to provide this
    important new protection for American workers.