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 public outreach program 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.  Requires such program to disseminate information including:  (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 Savings no later than June 1, 1998, and again in September 2001 and September 2005.  Authorizes appropriations.

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 Disseminated.--The information to be 
disseminated 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, how to establish each 
        of the different retirement savings vehicles for their workers, 
        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 how 
        to establish and maintain different retirement savings 
        arrangements for their workers and what the basic legal 
        requirements are under this Act and the Internal Revenue Code 
        of 1986;
            ``(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 further by adding at the end the following new section:

                ``national summit on retirement savings

    ``Sec. 517. (a) Authority To Call Summit.--Not later than June 1, 
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 in public policy, and actions in the field of 
        retirement income 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 (including for 1998, and thereafter as the 
Secretary may deem appropriate, the American Savings Education 
Council).
    ``(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 which hinder workers from 
        setting aside adequate savings for retirement;
            ``(5) to identify the barriers which impede employers, 
        especially small employers, from assisting 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 promote 
        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 retirement income savings among 
        American workers; and
            ``(9) to develop recommendations for the coordination of 
        Federal, State, and local policies among the Federal, State, 
        and local levels of government and for the coordination of such 
        policies (including any solutions for Federal, State, and local 
        needs devised at the Federal, State, and local levels) with the 
        efforts of the private sector to meet such needs, and to 
        identify the appropriate authority and entities to implement 
        such recommendations.
    ``(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; and
                    ``(F) the parties referred to in subsection (b).
            ``(3) Additional participants.--There shall be not more 
        than 400 additional participants. Of such additional 
        participants--
                    ``(A) one-fourth shall be appointed by the Speaker 
                of the House of Representatives;
                    ``(B) one-fourth shall be appointed by the Minority 
                Leader of the House of Representatives;
                    ``(C) one-fourth shall be appointed by the Majority 
                Leader of the Senate; and
                    ``(D) one-fourth shall be appointed by the Minority 
                Leader of the Senate.
        Such remaining participants shall be selected without regard to 
        political affiliation or past partisan activity and shall be 
        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, including 
                financial 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.
    ``(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) Reliance on private contributions.--The Secretary may 
        accept private contributions, in the form of money, supplies, 
        or services, to defray the costs of the National Summit. The 
        Secretary shall ensure, to the extent practicable, that at 
        least one-half of the funds available to the Secretary for each 
        fiscal year to carry out the provisions of this section consist 
        of such private contributions.
    ``(j) Contracts.--The Secretary may enter into contracts to carry 
out the Secretary's responsibilities under this section, but only to 
the extent, or in such amounts, as are provided in advance in 
appropriations Acts.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act (as amended by section 3 of this Act) is amended further by 
inserting after the item relating to section 516 the following new 
item:

``Sec. 517. National Summit on Retirement Savings.''.
    (c) Authorization of Appropriations for Fiscal Year 1998.--
Notwithstanding subsection (i) of section 517 of the Employee 
Retirement Income Security Act of 1974 (added by this section), the 
amount authorized to be appropriated for fiscal year 1998 to carry out 
such section is an amount equal to $1,000,000.