[Weekly Compilation of Presidential Documents Volume 38, Number 43 (Monday, October 28, 2002)]
[Pages 1814-1815]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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

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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 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.