Savings are Vital to Everyone's Retirement Act of 1997

Summary: Savings Are Vital to Everyone's Retirement Act of 1997 - Amends the Employee Retirement Income Security Act of 1974 to direct the Secretary of Labor to maintain an ongoing program of outreach to the public to effectively promote retirement income savings by workers through:  (1) public service announcements; (2) public meetings; (3) educational materials; and (4) a permanent site on the Internet. Includes among the information to be disseminated through such program: (1) a description of the common types of retirement income savings arrangements available to both individuals and employers, including small businesses; (2) a means for individuals to calculate their estimated retirement savings needs; and (3) an explanation for employers of how to establish and maintain different retirement savings arrangements for their workers. 
Directs the President to convene a National Summit on Retirement Income Savings, no later than July 15, 1998, and again in September 2001 and September 2005.  Authorizes appropriations.  Limits the Department of Labor's FY 1998 obligation for the National Summit to one-half its costs, or $250,000, whichever is less, with the balance to be made up by an organization of private sector businesses and associations partnered with Government entities to promote long-term financial security in retirement through savings.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Savings Are Vital to Everyone's 
Retirement Act of 1997''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds as follows:
        (1) The impending retirement of the baby boom generation will 
    severely strain our already overburdened entitlement system, 
    necessitating increased reliance on pension and other personal 
    savings.
        (2) Studies have found that less than a third of Americans have 
    even tried to calculate how much they will need to have saved by 
    retirement, and that less than 20 percent are very confident they 
    will have enough money to live comfortably throughout their 
    retirement.
        (3) A leading obstacle to expanding retirement savings is the 
    simple fact that far too many Americans--particularly the young--
    are either unaware of, or without the knowledge and resources 
    necessary to take advantage of, the extensive benefits offered by 
    our retirement savings system.
    (b) Purpose.--It is the purpose of this Act--
        (1) to advance the public's knowledge and understanding of 
    retirement savings and its critical importance to the future well-
    being of American workers and their families;
        (2) to provide for a periodic, bipartisan national retirement 
    savings summit in conjunction with the White House to elevate the 
    issue of savings to national prominence; and
        (3) to initiate the development of a broad-based, public 
    education program to encourage and enhance individual commitment to 
    a personal retirement savings strategy.

SEC. 3. OUTREACH BY THE DEPARTMENT OF LABOR.

    (a) In General.--Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) is 
amended by adding at the end the following new section:


             ``outreach to promote retirement income savings

    ``Sec. 516. (a) In General.--The Secretary shall maintain an 
ongoing program of outreach to the public designed to effectively 
promote retirement income savings by the public.
    ``(b) Methods.--The Secretary shall carry out the requirements of 
subsection (a) by means which shall ensure effective communication to 
the public, including publication of public service announcements, 
public meetings, creation of educational materials, and establishment 
of a site on the Internet.
    ``(c) Information To Be Made Available.--The information to be made 
available by the Secretary as part of the program of outreach required 
under subsection (a) shall include the following:
        ``(1) a description of the vehicles currently available to 
    individuals and employers for creating and maintaining retirement 
    income savings, specifically including information explaining to 
    employers, in simple terms, the characteristics and operation of 
    the different retirement savings vehicles, including the steps to 
    establish each such vehicle; and
        ``(2) information regarding matters relevant to establishing 
    retirement income savings, such as--
            ``(A) the forms of retirement income savings;
            ``(B) the concept of compound interest;
            ``(C) the importance of commencing savings early in life;
            ``(D) savings principles;
            ``(E) the importance of prudence and diversification in 
        investing;
            ``(F) the importance of the timing of investments; and
            ``(G) the impact on retirement savings of life's 
        uncertainties, such as living beyond one's life expectancy.
    ``(d) Establishment of Site on the Internet.--The Secretary shall 
establish a permanent site on the Internet concerning retirement income 
savings. The site shall contain at least the following information:
        ``(1) a means for individuals to calculate their estimated 
    retirement savings needs, based on their retirement income goal as 
    a percentage of their preretirement income;
        ``(2) a description in simple terms of the common types of 
    retirement income savings arrangements available to both 
    individuals and employers (specifically including small employers), 
    including information on the amount of money that can be placed 
    into a given vehicle, the tax treatment of the money, the amount of 
    accumulation possible through different typical investment options 
    and interest rate projections, and a directory of resources of more 
    descriptive information;
        ``(3) materials explaining to employers in simple terms, the 
    characteristics and operation of the different retirement savings 
    arrangements for their workers and what the basic legal 
    requirements are under this Act and the Internal Revenue Code of 
    1986, including the steps to establish each such arrangement;
        ``(4) copies of all educational materials developed by the 
    Department of Labor, and by other Federal agencies in consultation 
    with such Department, to promote retirement income savings by 
    workers and employers; and
        ``(5) links to other sites maintained on the Internet by 
    governmental agencies and nonprofit organizations that provide 
    additional detail on retirement income savings arrangements and 
    related topics on savings or investing.
    ``(e) Coordination.--The Secretary shall coordinate the outreach 
program under this section with similar efforts undertaken by other 
public and private entities.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act is amended by inserting after the item relating to section 514 
the following new items:

``Sec. 515. Delinquent contributions.
``Sec. 516. Outreach to promote retirement income savings.''.

SEC. 4. NATIONAL SUMMIT ON RETIREMENT SAVINGS.

    (a) In General.--Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974, as amended by section 3 of this 
Act, is amended by adding at the end the following new section:


                 ``national summit on retirement savings

    ``Sec. 517. (a) Authority To Call Summit.--Not later than July 15, 
1998, the President shall convene a National Summit on Retirement 
Income Savings at the White House, to be co-hosted by the President and 
the Speaker and the Minority Leader of the House of Representatives and 
the Majority Leader and Minority Leader of the Senate. Such a National 
Summit shall be convened thereafter in 2001 and 2005 on or after 
September 1 of each year involved. Such a National Summit shall--
        ``(1) advance the public's knowledge and understanding of 
    retirement savings and its critical importance to the future well-
    being of American workers and their families;
        ``(2) facilitate the development of a broad-based, public 
    education program to encourage and enhance individual commitment to 
    a personal retirement savings strategy;
        ``(3) develop recommendations for additional research, reforms, 
    and actions in the field of private pensions and individual 
    retirement savings; and
        ``(4) disseminate the report of, and information obtained by, 
    the National Summit and exhibit materials and works of the National 
    Summit.
    ``(b) Planning and Direction.--The National Summit shall be planned 
and conducted under the direction of the Secretary, in consultation 
with, and with the assistance of, the heads of such other Federal 
departments and agencies as the President may designate. Such 
assistance may include the assignment of personnel. The Secretary 
shall, in planning and conducting the National Summit, consult with the 
congressional leaders specified in subsection (e)(2). The Secretary 
shall also, in carrying out the Secretary's duties under this 
subsection, consult and coordinate with at least one organization made 
up of private sector businesses and associations partnered with 
Government entities to promote long-term financial security in 
retirement through savings.
    ``(c) Purpose of National Summit.--The purpose of the National 
Summit shall be--
        ``(1) to increase the public awareness of the value of personal 
    savings for retirement;
        ``(2) to advance the public's knowledge and understanding of 
    retirement savings and its critical importance to the future well-
    being of American workers and their families;
        ``(3) to facilitate the development of a broad-based, public 
    education program to encourage and enhance individual commitment to 
    a personal retirement savings strategy;
        ``(4) to identify the problems workers have in setting aside 
    adequate savings for retirement;
        ``(5) to identify the barriers which employers, especially 
    small employers, face in assisting their workers in accumulating 
    retirement savings;
        ``(6) to examine the impact and effectiveness of individual 
    employers to promote personal savings for retirement among their 
    workers and to promote participation in company savings options;
        ``(7) to examine the impact and effectiveness of government 
    programs at the Federal, State, and local levels to educate the 
    public about, and to encourage, retirement income savings;
        ``(8) to develop such specific and comprehensive 
    recommendations for the legislative and executive branches of the 
    Government and for private sector action as may be appropriate for 
    promoting private pensions and individual retirement savings; and
        ``(9) to develop recommendations for the coordination of 
    Federal, State, and local retirement income savings initiatives 
    among the Federal, State, and local levels of government and for 
    the coordination of such initiatives.
    ``(d) Scope of National Summit.--The scope of the National Summit 
shall consist of issues relating to individual and employer-based 
retirement savings and shall not include issues relating to the old-
age, survivors, and disability insurance program under title II of the 
Social Security Act.
    ``(e) National Summit Participants.--
        ``(1) In general.--To carry out the purposes of the National 
    Summit, the National Summit shall bring together--
            ``(A) professionals and other individuals working in the 
        fields of employee benefits and retirement savings;
            ``(B) Members of Congress and officials in the executive 
        branch;
            ``(C) representatives of State and local governments;
            ``(D) representatives of private sector institutions, 
        including individual employers, concerned about promoting the 
        issue of retirement savings and facilitating savings among 
        American workers; and
            ``(E) representatives of the general public.
        ``(2) Statutorily required participation.--The participants in 
    the National Summit shall include the following individuals or 
    their designees:
            ``(A) the Speaker and the Minority Leader of the House of 
        Representatives;
            ``(B) the Majority Leader and the Minority Leader of the 
        Senate;
            ``(C) the Chairman and ranking Member of the Committee on 
        Education and the Workforce of the House of Representatives;
            ``(D) the Chairman and ranking Member of the Committee on 
        Labor and Human Resources of the Senate;
            ``(E) the Chairman and ranking Member of the Special 
        Committee on Aging of the Senate;
            ``(F) the Chairman and ranking Member of the Subcommittees 
        on Labor, Health and Human Services, and Education of the 
        Senate and House of Representatives; and
            ``(G) the parties referred to in subsection (b).
        ``(3) Additional participants.--
            ``(A) In general.--There shall be not more than 200 
        additional participants. Of such additional participants--
                ``(i) one-half shall be appointed by the President, in 
            consultation with the elected leaders of the President's 
            party in Congress (either the Speaker of the House of 
            Representatives or the Minority Leader of the House of 
            Representatives, and either the Majority Leader or the 
            Minority Leader of the Senate; and
                ``(ii) one-half shall be appointed by the elected 
            leaders of Congress of the party to which the President 
            does not belong (one-half of that allotment to be appointed 
            by either the Speaker of the House of Representatives or 
            the Minority Leader of the House of Representatives, and 
            one-half of that allotment to be appointed by either the 
            Majority Leader or the Minority Leader of the Senate).
            ``(B) Appointment requirements.--The additional 
        participants described in subparagraph (A) shall be--
                ``(i) appointed not later than January 31, 1998;
                ``(ii) selected without regard to political affiliation 
            or past partisan activity; and
                ``(iii) representative of the diversity of thought in 
            the fields of employee benefits and retirement income 
            savings.
        ``(4) Presiding officers.--The National Summit shall be 
    presided over equally by representatives of the executive and 
    legislative branches.
    ``(f) National Summit Administration.--
        ``(1) Administration.--In administering this section, the 
    Secretary shall--
            ``(A) request the cooperation and assistance of such other 
        Federal departments and agencies and other parties referred to 
        in subsection (b) as may be appropriate in the carrying out of 
        this section;
            ``(B) furnish all reasonable assistance to State agencies, 
        area agencies, and other appropriate organizations to enable 
        them to organize and conduct conferences in conjunction with 
        the National Summit;
            ``(C) make available for public comment a proposed agenda 
        for the National Summit that reflects to the greatest extent 
        possible the purposes for the National Summit set out in this 
        section;
            ``(D) prepare and make available background materials for 
        the use of participants in the National Summit that the 
        Secretary considers necessary; and
            ``(E) appoint and fix the pay of such additional personnel 
        as may be necessary to carry out the provisions of this section 
        without regard to provisions of title 5, United States Code, 
        governing appointments in the competitive service, and without 
        regard to chapter 51 and subchapter III of chapter 53 of such 
        title relating to classification and General Schedule pay 
        rates.
        ``(2) Duties.--The Secretary shall, in carrying out the 
    responsibilities and functions of the Secretary under this section, 
    and as part of the National Summit, ensure that--
            ``(A) the National Summit shall be conducted in a manner 
        that ensures broad participation of Federal, State, and local 
        agencies and private organizations, professionals, and others 
        involved in retirement income savings and provides a strong 
        basis for assistance to be provided under paragraph (1)(B);
            ``(B) the agenda prepared under paragraph (1)(C) for the 
        National Summit is published in the Federal Register; and
            ``(C) the personnel appointed under paragraph (1)(E) shall 
        be fairly balanced in terms of points of views represented and 
        shall be appointed without regard to political affiliation or 
        previous partisan activities.
        ``(3) Nonapplication of faca.--The provisions of the Federal 
    Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
    National Summit.
    ``(g) Report.--The Secretary shall prepare a report describing the 
activities of the National Summit and shall submit the report to the 
President, the Speaker and Minority Leader of the House of 
Representatives, the Majority and Minority Leaders of the Senate, and 
the chief executive officers of the States not later than 90 days after 
the date on which the National Summit is adjourned.
    ``(h) Definition.--For purposes of this section, the term `State' 
means a State, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, Guam, the 
Virgin Islands, American Samoa, and any other territory or possession 
of the United States.
    ``(i) Authorization of Appropriations.--
        ``(1) In general.--There is authorized to be appropriated for 
    fiscal years beginning on or after October 1, 1997, such sums as 
    are necessary to carry out this section.
        ``(2) Authorization to accept private contributions.--In order 
    to facilitate the National Summit as a public-private partnership, 
    the Secretary may accept private contributions, in the form of 
    money, supplies, or services, to defray the costs of the National 
    Summit.
    ``(j) Financial Obligation for Fiscal Year 1998.--The financial 
obligation for the Department of Labor for fiscal year 1998 shall not 
exceed the lesser of--
        ``(1) one-half of the costs of the National Summit; or
        ``(2) $250,000.
The private sector organization described in subsection (b) and 
contracted with by the Secretary shall be obligated for the balance of 
the cost of the National Summit.
    ``(k) Contracts.--The Secretary may enter into contracts to carry 
out the Secretary's responsibilities under this section. The Secretary 
shall enter into a contract on a sole-source basis to ensure the timely 
completion of the National Summit in fiscal year 1998.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act, as amended by section 3 of this Act, is amended by inserting 
after the item relating to section 516 the following new item:

``Sec. 517. National Summit on Retirement Savings.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.