[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.