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Bush
Seeks More Rules to Protect 401(k) Plans
NY Times, October 20, 2002
His message was timed to coincide with the quarterly statements being received by employees who save part of their wages in tax-advantaged 401(k) plans, often investing the money in the stock market or their own company shares. Because of the market's tumble in the third quarter, many people are seeing declines in these accounts. "Today's workers own more than $1.5 trillion in assets through their 401(k)'s," Mr. Bush said in his weekly Saturday morning radio address. "Younger workers have an average of about $10,000 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." The radio address is one of several steps the administration is taking to deal with economic policy questions before the election on Nov. 5. Out of five legislative proposals on retirement savings that the administration offered after the Enron bankruptcy, Congress passed two. One gives workers 30 days' notice before a "blackout period" on selling company stock in these plans — as might occur when changes are made in the management of a retirement account. The other prevents executives from buying and selling during blackout periods shares that they are awarded under stock option plans. The other three proposals passed the Republican-led House but are still waiting for action by the Senate. Mr. Bush, who has sought to counter Democratic criticism of his economic policies by arguing that the Senate has been blocking his initiatives, asked it to complete action on the other proposals. "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," Mr. Bush said. "People who work hard and save for the future deserve every protection we can give them." The other three proposals, which Mr. Bush called "common sense," would let workers sell company stock from their retirement plans after three years, give investors more information on the performance of their accounts and provide workers with more access to professional investment advice "so they can make more informed decisions about their savings," Mr. Bush said. The president, who has not spoken about the economy in his weekly address since mid-August, also discussed the plans of the Securities and Exchange Commission for new regulation of corporate executives. The rules would prevent executives from selling their own holdings of company stock while workers could not. "Corporate executives will no longer be able to sell off their company's declining stock while employees are left holding the bag," Mr. Bush said. These rules will take effect early next year and "give workers greater protections against corporate fraud or abuse," the president said.
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