Opening Statement of the Hon. William J. Coyne, a Representative in Congress from the State of Pennsylvania

Hearing on Employee and Employer Views on Retirement Security

March 5, 2002

I want to thank Subcommittee Chairman Houghton for scheduling today's hearing on overall pension issues under the Committee's jurisdiction. Retirement security in America is one of the most important issues under the Ways and Means Committee's jurisdiction. About 100 million workers participate in employer-sponsored pension and retirement savings plans, and they correctly rely on these plans for their retirement security. Together, these workers' pension plans account for more than $4 trillion in retirement assets.

The financial collapse of Enron had a devastating impact on the company's workers and retirees. I believe that the testimony of several former Enron employees about how the bankruptcy of their employer has left them largely pensionless will prove useful in reminding Members of the Committee of the high stakes associated with the decisions we make on these issues.

Some of questions which we must ask today are:

• Should company stock be used as the "employer match" in funding a worker's pension plan?

• Should pension investment lockdowns or freezes be allowed for lengthy periods of time and not apply equally to all employees?

• What risk issues do employees face in saving for their retirement through employer-provided 401(k), thrift saving, profit sharing and employee stock ownership plans?

• What types of plan and investment information should employees have to ensure they have adequate pension benefits when they retire?

As we learn from the "Enron experience" today, I hope the Subcommittee will consider the risks involved in the privatization of Social Security. It is my concern that privatization of Social Security would unnecessarily put workers' pension assets at great risk.

Congress must be careful in considering new pension legislation to respond to any shortfalls brought to light by the Enron collapse - while at the same time being mindful of the fact that the biggest pension problem in the United States today is the lack of pension coverage for more than half of all workers.

I look forward to hearing from all the witnesses about these issues, including what this Committee can do to prevent "Enrons in the future."

Thank you.