[Weekly Compilation of Presidential Documents Volume 42, Number 32 (Monday, August 14, 2006)]
[Page 1441]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Pension Reform Legislation

August 4, 2006

    After a lifetime of work, American workers have earned the 
opportunity to enjoy a secure retirement. Last year, I asked Congress to 
strengthen protections for workers' pensions. Congress has now delivered 
the most comprehensive reforms to America's pension system in over 30 
years.
    This legislation sets the right target for pension plan soundness: 
100 percent funding of all promises. It would allow employers to put 
more money into their pension plans during good times, building a 
cushion that can survive lean times. Congress has also acted to make it 
harder in the future for employers with underfunded pension plans to 
promise additional benefits to their workers without funding those new 
promises.
    These measures will provide workers with better information about 
their pension plans, eliminate loopholes that interfere with strong 
pension funding, and increase the accuracy of pension plan measurements. 
The bill would reform the rules governing employer funding and premium 
contributions to strengthen the pension insurance system.
    The legislation also contains provisions to help workers who save 
for retirement through defined contribution plans. The legislation will 
make it easier for workers to participate in such savings plans by 
removing regulatory barriers to automatic enrollment. It also gives 
workers more information about how their accounts are performing and 
greater control over how their accounts are invested. Workers will be 
allowed greater access to advice about how to safely invest for 
retirement. And finally, the bill will enable more workers to build 
larger retirement nest eggs, by making permanent higher allowed 
contribution amounts in IRA and 401(k) plans.
    I look forward to signing this important legislation into law soon.

Note: The statement referred to H.R. 4. This item was not received in 
time for publication in the appropriate issue.