[an error occurred while processing this directive]
[an error occurred while processing this directive]
[an error occurred while processing this directive]
[an error occurred while processing this directive]
[an error occurred while processing this directive]
Guest Commentary June 3, 2002
Retirement Security
The Honorable Jeff Bingaman
In light of Enron and other corporate abuses, it is patently evident that we must strengthen our retirement and pension laws so that employees' retirement savings are given real protections. We must protect the retirement savings of our workers from unscrupulous executives who are willing to use their positions to enrich themselves at the expense of the employees. We must also be sure that employees are protected from various conflicts of interest that allow accountants, analysts, and employers to act in their own self-interest and financial well being instead of the best interests of the employees.
In particular, we must be sure that we do not change the law to expose employees to new conflicts of interest, as would occur if we allowed conflicted investment advisers to invade the secure world of ERISA protected retirement plans. Of course, all of these protections don't mean much if employees do not have the ability to diversify out of employer securities so that they are not financially ruined when there is an economic downturn or their employer goes out of business. ...
Free Newsletter
Get the scoop on important legislation, Congressional action, election updates, hard-hitting political commentary, the latest developments in the War on Terror...and more! Just enter your email address below.
Privacy: Your name and email address will be confidential - never rented, never sold.
Although we have made great strides in the past several years, we still have more to do to be sure workers with traditional pension plans are able to take their savings with them when they move on to a new job. While retirement plans are more portable than traditional pensions, we must still make sure that employees have the right to take what is theirs with them if they change employment. In these cases, plan portability is not the only issue, concerns over vesting and the ability to diversify out of employer stock are equally important.
We need to ensure that executives of companies do not walk away from a business with millions in benefits when the employees are sent home with a retirement account full of worthless employer stock. It is fair that executives have more money in their retirement accounts -- that is one of the benefits of being a higher salaried employee. What isn't fair, though, is when executives have millions in deferred compensation and other executive benefits that have been funded by tax-preferenced vehicles like corporate owned life insurance none of which is available to the workers. If a benefit does not meet non-discrimination rules, it is unclear to me why a company should be able to be fund these executive benefits through tax-preferred chicanery.
As we move into the 21st century it is important that we take note of the state of our private retirement system and work to improve it. Too many Americans still do not have any pension or retirement coverage. That must improve.
Jeff Bingaman, a Democrat, is a U.S. Senator from New Mexico. The above commentary has been adapted from a speech Sen. Bingaman delivered on the floor of the Senate, May 23, 2002. To contact him, Click Here.
The above column has been distributed by PoliticsOL.com.
