"The Enron Corp.'s collapse put pension security on the map. I'm glad to see the President respond. The tax code smiles on retirement plans, for good reason. Tax breaks encourage employers to set up retirement plans and employees to take part in those plans. If employers find it easy to break the rules, then Congress has to re-write the rule book. Otherwise, employees counting on a secure retirement might be left out in cold.
"The President's proposal is close to the specifications I've outlined for my own legislation to stop retirement plan abuse. The Bush proposal for greater freedom to diversify funds, to regulate the ?black-out' periods, and to clarify fiduciary standards during black-out periods are proposals I've discussed in the past. In the last two Congresses, I've introduced legislation to guarantee participants get regular benefit statements, and the President included that requirement in his proposal.
"Anti-abuse legislation will build on major improvements to retirement plan laws included in the tax bill Congress passed and the President signed into law last spring. The tax bill included extensive changes to rules covering individual retirement arrangements (IRAs) and qualified pension plans, such as increased contribution limits and catch-up provisions for pensions and IRAs; increased contribution and benefit limits for qualified pension plans; and provisions to enhance fairness for women. All of these provisions are in effect for this tax year. For example, taxpayers are now able to contribute an additional $1,000 to an IRA.
"Finally, the President is right on the mark in saying executives should be held to the same restrictions as lower level American workers during black-out periods. I'll continue working closely with the President and the Treasury Department on this important legislation."