Date: 2001-11-14
Speaker: SAM JOHNSON (republican)
Chamber: H
State: Texas

Mr. Speaker. I yield myself such time as I may consume. There is a broad consensus that workers need access to expert investment advice. I did not know we were going to talk about tax relief and other subjects. but there are only 16 percent of 401(k) participants that have access to investment advice through their retirement plans. and only 17 percent have access through outside advisors. Seventyfive percent of fulltime employees surveyed said they would take advantage of individualized advice service if their employers offered it. and we have been hearing about banks. Banks are regularly examined. Examinations occur frequently. Bank tellers cannot provide investment advice. Bank trust departments have a long history of trust investment. and they have been managing trusts for over two centuries. Banks manage over $2 trillion in employment benefit trusts. and banks have strong capital. which provides added protection for funds being invested. I doubt there is a bank in this country that would allow their trust department to make bad advice because the bank would be out of business. Recent market volatility tells us investment decisions must be based on solid and experienced judgment. Yet. as of today. we continue to deny our employees the same tools that corporations and unions are allowed to use in making sound investment decisions for their defined benefit plans. This bill changes that. Simply put. this measure ends investment ignorance and provides workers full control over their investment decisions. It repeals an outdated 1974 law that denies millions of Americans access to investment advice that could help them make the most of their retirement savings. No longer will wealthy individuals be the only ones to enjoy the luxury of being able to afford their own professional investment advice. Now low and middle income Americans will have the same choice. Since individuals bear the risk of stock market volatility in their 401(k) accounts. they are the ones who must have advice on how to better diversify their portfolios so they are financially prepared for retirement. H.R. 2269 will permit employers to offer investment advice as an employee benefit. This legislation does not require any employer to contract with an investment advisor and no employee is under any obligation to accept or" follow any advice. This bill is good policy for todays workers and tomorrows retirees. That is why the bill has been endorsed by the Department of Labor. the Department of Treasury and the Department of Commerce. In testifying before my subcommittee. Department of Labor Assistant Secretary Ann Combs praised the bill and said. "We believe the bill creates a strong protective framework for the provision of investment advice to participants. Both the Committee on Ways and Means and the Committee on Education and the Workforce have worked hard to take a balanced approach for increasing worker access to advice while including safeguards to protect employees interests. I urge Members to join all of us in supporting H.R. 2269. Without it. millions of Americans will be in the dark in protecting and growing their retirement nest egg. Mr. Speaker. I yield back the balance of my time.