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Archived News Release--Caution:
information may be out of date.
For more information call: 202/219-8211
Fifty-one million American workers could benefit if
Congress passes President Clinton's Retirement Savings and Security Act,
Secretary of Labor Robert B. Reich told a Capitol Hill news conference today as
the legislation was introduced.
"This legislation will expand pension savings coverage,
help workers carry pensions with them when they change jobs, and increase
safeguards against abuse," Reich said.
The bill is sponsored by Sen. Tom Daschle, D-S.D., the
Senate Democratic leader, and Rep. Richard Gephardt, D-Mo., the House
Democratic leader. They were joined at a Capitol Hill news conference by Reich
and Secretary of the Treasury Robert Rubin.
"Today, half of America's workers in private industry are
not earning a pension and the typical worker changes jobs several times during
a career. Almost 51 million Americans are heading toward their golden years
without enough gold in their pockets," Reich said. "This legislation will help
workers in small businesses, younger workers and Baby Boomers - all those
people who are having trouble saving for their retirement."
Reich said the plan should increase pension savings. "It
eliminates a barrier which has caused a lot of employers to impose a waiting
period before their employees can start saving. It also makes pensions more
portable by eliminating barriers which have kept workers from moving pension
savings from their old jobs into new plans," Reich said.
Reich noted that the House had approved on Wednesday a tax
package proposed by the Congressional majority which includes incentives for
small businesses to offer retirement savings plan for their workers. But the
bill approved by the House doesn't insure that lower-paid employees would get
the benefits of the new simplified plans.
"We're happy to see the House leadership has come up with a
pension bill which has some of the same elements as the package President
Clinton first proposed in June 1995 and then expanded upon last month. Although
ours is more comprehensive, this shows there is room for bipartisan agreement.
We look forward to working with Congress to put together a pension package the
President can sign," said Reich.
The administration legislation expands pension coverage,
helps workers carry pensions with them when they change jobs, provides more
inducements to save for retirement, increases safeguards against abuses, and
prevents pension raiding.
"This legislative package is the latest in a series of
steps that this administration has taken to protect and enhance pensions since
we took office," Reich said. "We've passed the Retirement Protection Act to cut
down on the problem of underfunded pensions. We've moved aggressively to
protect 401(k) retirement savings by cracking down on employers who have been
misusing the money. We've also proposed legislation that would require auditors
who find problems with 401(k)s to tell us immediately, rather than simply
filing reports."
Archived News Release--Caution:
information may be out of date.
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