[Weekly Compilation of Presidential Documents Volume 31, Number 49 (Monday, December 11, 1995)]
[Pages 2146-2147]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Letter to Congressional Leaders on Proposed Legislation to Protect 
Retirement Plans

December 7, 1995

Dear __________:

    Since the beginning of this Administration, we have worked together 
to protect the retirement savings of hard-working Americans. Last year, 
Congress passed legislation proposed by the Administration that secured 
the retirement promises made to over 40 million workers in traditional 
pension plans.
    Now we must all act to ensure that the savings of the 22 million 
American workers who put their hard-earned money into 401(k) plans are 
safe. We need to make certain the government has the tools to assure 
American workers they can put their savings--and their trust--into a 
system that will be there when they need it most.
    I urge you to swiftly approve legislation we sent to Congress in 
July that would give both private auditors and the government new 
strength and more effective tools with which to enforce the law and 
prevent abuse of employee retirement savings by unscrupulous employers.
    My Administration has consistently urged Americans to save for their 
retirement--a message echoed by financial planners, consumer groups and 
virtually everyone who has considered this issue. But Americans need to 
know their savings are safe if they are to follow this sound advice.
    While the vast majority of employers fully respect and protect their 
employees' savings, some employers are abusing that trust. Last week, 
the Department of Labor, which protects private pensions, urged 
consumers to watch for warning signs to protect their 401(k) 
investments. The Department of Labor's Pension and Welfare Benefits 
Administration has begun a nationwide enforcement initiative that has 
already uncovered the misuse of millions of dollars of contributions by 
workers. Over $3.5 million has already been returned to workers; 310 
investigations remain open, and more cases are coming.
    On July 6, Secretary of Labor Reich transmitted to Congress the 
``ERISA Enforcement Improvement Act.'' Our legislation would help in 
early identification of potential

[[Page 2147]]

abuses, strengthen pension plan auditing and subject abusers to new 
penalties. Since July, we have worked with members of Congress and the 
financial community to develop a bipartisan consensus to protect our 
workers.
    I am sure you agree with the 22 million Americans who place their 
faith and trust in 401(k) plans that this is an issue of protection, not 
partisanship.
    I strongly urge you to give this important legislation your 
immediate attention, and urge that it be enacted before the end of the 
year. America's workers shouldn't be asked to wait a day longer.
    Sincerely,
                                                  Bill Clinton

Note: Identical letters were sent to Senators Robert Dole, Thomas 
Daschle, Paul Simon, Edward M. Kennedy, Nancy Kassebaum, and 
Representatives Newt Gingrich, Dick Gephardt, Patsy T. Mink, Harris W. 
Fawell, William F. Goodling, William Clay, and Matthew G. Martinez.