    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book II)]
    [October 19, 2002]
    [Pages 1846-1847]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    October 19, 2002

        Good morning. I want to discuss with you steps we are taking to help
    strengthen the retirement security of America's workers. More than 40
    million Americans save for retirement through 401(k) accounts, making
    regular contributions and building economic security over a lifetime. A
    401(k) provides a chance to invest in the long-term growth of the
    American economy and an opportunity to build wealth and independence.
        Today's workers own more than $1.5 trillion in assets through their
    401(k)s. Younger workers have an average of about $10,000 in their
    accounts, while workers near retirement hold closer to $100,000 in their
    401(k)s. This is real money for real workers, and we must do all we can
    to help make sure it's there for them when they retire.
        Turbulence in the financial markets reminds us that every investment
    carries some risk. Yet American workers also have

    [[Page 1847]]

    rights which must be respected and enforced. I've made five commonsense
    proposals to help protect the retirement savings of American workers.
        First, every worker should get 30 days advance notice before any
    blackout period, the time when they cannot sell, buy, or borrow from
    their 401(k)s.
        Second, corporate executives should have to follow the same rules
    that every other employee must follow during blackout periods. If you
    can't sell on the shop floor, you should not be able to sell on the top
    floor.
        Third, workers should be able to sell their company stock after
    holding it for 3 years so that no one's nest egg is tied up in the stock
    of a single company.
        Fourth, investors should receive better information, including
    quarterly, not just yearly, reports on how their 401(k)s are performing.
        And fifth, workers should have access to professional investment
    advice so they can make more informed decisions about their savings.
        The United States Congress has passed only two of these proposals,
    giving workers advance notice of blackout periods and holding executives
    to the same rules as their employees. I signed these reforms into law.
        On Monday, my administration is implementing that law with tough new
    rules to require that companies give their workers 30 days' notice
    before any blackout period. Under the new rule, employees will have time
    to buy or sell stock or borrow from their accounts before the accounts
    are temporarily frozen. This important protection will help ensure that
    workers don't get stuck in a bad investment simply because their
    employers block them from accessing their own accounts.
        The Securities and Exchange Commission is also working on a new rule
    to prevent corporate executives from selling off their own holdings of
    company stock when employees are kept from doing so. Corporate
    executives will no longer be able to sell off their company's declining
    stock while employees are left holding the bag. Both of these rules will
    take effect early next year and give workers greater protections against
    corporate fraud or abuse.
        These rules are a step forward in protecting the rights of
    investors. More steps are needed. My three additional proposals--
    allowing more diversity in 401(k) accounts, and more frequent account
    updates, and advice for workers--have already passed in the House. But
    after 6 months, the Senate has not acted. For the sake of American
    workers who are concerned about their retirement security, I urge the
    Senate to pass the rest of my proposals into law. People who work hard
    and save for the future deserve every protection we can give them.
        Thank you for listening.

    Note: The address was recorded at 9:01 a.m. on October 17 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on October 19. The
    transcript was made available by the Office of the Press Secretary on
    October 18 but was embargoed for release until the broadcast. The Office
    of the Press Secretary also released a Spanish language transcript of
    this address.