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OPA News Release: [05/23/2002]
Contact Name: Sue
Hensley
Phone Number: (202) 693-4676
Labor Secretary Elaine L.
Chao Urges Senate Committee to Address
Retirement Issues of Women
WASHINGTON – Secretary of Labor Elaine L. Chao today urged
the Senate Committee on Aging to act on the pension reforms proposed by
President Bush to help millions of Americans save for a more secure retirement.
These reforms are especially important to women because their participation in
retirement plans has risen significantly. Secretary Chao also calls on American
workers – especially women – to take advantage of the President
Bush’s tax law changes that improve retirement security and savings
opportunity.
“In the last few decades, the lives of American women have been
profoundly affected by social and economic changes in the retirement
area,” said Chao. “President Bush’s proposal will help working
women face a more secure financial future by strengthening 401(k) plans through
new controls and rights.”
Women will reap special benefits under the provisions of the
President’s proposal that:
· Help workers diversify their 401(k) portfolios by enabling them
to transfer holdings of employer stock contributed by an employer after three
years.
- Require employers to provide quarterly benefits statements with
important educational information
- Prohibit corporate “insider trading” during black-out
periods, and
- Provide access to professional investment advice from advisors
acting solely in interest of workers.
Chao noted that women have made tremendous economic strides. More women
are represented in the workforce overall than at any other time in history.
Women are also a leading force in the American small business community, as
women-owned firms have become the fastest-growing segment of the economy.
Furthermore, the most recent surveys indicate that women are saving more and
their pension balances are rising: the average woman’s 401(k) balance has
moved from half to two-thirds that of men in the last ten years.
“Women need choice over how and where they invest, they need
information to manage and control their investments, and they need to be
confident that their savings are secure,” said Chao.
Chao also urges American workers aged 50 and older to save more for
their retirement by making “catch-up contributions” as instituted by
the 2001 tax law. These workers can make additional annual contributions to
their (401) k accounts. These contributions are of particular importance to
women who may have smaller accounts reflecting years with reduced earnings or
out of the workforce. The new tax law also makes it easier for workers to roll
over their retirement savings when they change jobs.
She commended the Senate Committee on Aging for examining the impact of
economic changes on the retirement security of women. Chao also encouraged the
committee to carefully weigh the President’s reforms as a way to help not
just women, but all American workers save for a secure retirement.
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