[Weekly Compilation of Presidential Documents Volume 35, Number 40 (Monday, October 11, 1999)]
[Page 1960]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on the Proposed ``Pension Reduction Disclosure Act of 1999''

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