H. R. 1377
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
To amend title I of the Employee Retirement Income Security Act of 1974 to
encourage retirement income savings.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
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:
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‘‘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 communica-
tion to the public, including publication of public service announce-
ments, 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 retire-
ment 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 employ-
ers), 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 con-
sultation with such Department, to promote retirement income
savings by workers and employers; and
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‘‘(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 out-
reach 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 individ-
ual 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;
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‘‘(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 rec-
ommendations for the legislative and executive branches of
the Government and for private sector action as may be appro-
priate 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 partici-
pants 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 Commit-
tee on Education and the Workforce of the House of Rep-
resentatives;
‘‘(D) the Chairman and ranking Member of the
Committee on Labor and Human Resources of the Senate;
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‘‘(E) the Chairman and ranking Member of the Special
Committee on Aging of the Senate;
‘‘(F) the Chairman and ranking Member of the Sub-
committees 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 Presi-
dent’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 Rep-
resentatives 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 Minor-
ity 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 great-
est 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 person-
nel 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
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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 sec-
tion, and as part of the National Summit, ensure that—
‘‘(A) the National Summit shall be conducted in a man-
ner 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 para-
graph (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 rep-
resented 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 Sen-
ate, 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 finan-
cial 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.’’.
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(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.