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Issue
Should Congress pass legislation that would require joint employee/employer
trusteeship of pension plans? Should employees be able to sell company
stock in their 401(k) accounts after three years? Should limitations be
placed on how companies offer stock to employees? Should employers be
required to provide independent investment advice to employees?
Status
Congress passed outstanding legislation in 2001 that provided many incentives
for employers to start and maintain retirement programs. These include
increasing the contribution and benefit thresholds on 401(k)s, SIMPLEs,
SEPs, and IRAs; reducing reporting and administrative burdens for companies
that have pension plans; and creating new programs to encourage small
businesses to participate.
On the other
hand, the failure of Enron’s pension plans has brought on new issues.
While most of the legislation is aimed at companies that have 401(k)s
that concentrate heavily on company stock (not typical of printing companies),
some of the provisions significantly increase liability on employers with
respect to fiduciary responsibilities, reporting requirements, and employee
information. The issues are complex and should be reviewed on a topic-by-topic
basis.
Concerns
Printers are very pleased with the pension reform legislation that passed
in 2001. However, there are concerns that the post-Enron legislation will
go too far — to the point where employers will start giving up their
employee retirement options. Excessive liability requirements will hinder
employers’ willingness and ability to provide pension plans.
Position
PIA should work to ensure that any tightening of requirements on pension
providers are not overly burdensome and result in employers dropping their
plans. PIA should support efforts to strengthen the pension system to
ensure that Enron-style debacles do not threaten the nation's voluntary
pension system.
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