Opening Statement of the Hon. Amo Houghton, a Representative in Congress from the State of New York,
and Chairman, Subcommittee on Oversight

Hearing on Employee and Employer Views on Retirement Security

March 5, 2002

Good afternoon. Congress has paid a great deal of attention in recent months to the need to provide for increased security of retirement benefits. While we can't pass legislation to prevent the normal business cycles that inevitably produce company failures, we can examine how to help workers build a solid foundation for their retirement years.

A retirement plan is an essential employee benefit. In light of today's worries, the Federal government must examine the way current rules are working. We want to hear from employees. We want to hear about the strengths and weaknesses of existing law and the proposed changes.

The problems raised by the Enron situation are a wake up call that now has everyone's attention. But we should not dwell on the actions of one failed company - we need to get a wider perspective and legislate on the collective needs of workers and companies.

So today's hearing is not about Enron, but rather about the security of retirement plans. Employers and employees have a variety of options to help assure a comfortable retirement. Social Security. Defined benefit plans. Defined contribution plans. Employee stock ownership plans. Individual savings accounts. Different plans come with different options and different rules.

But it is the variety of retirement options that should be helpful to employees and employers. Just as "one size DOES NOT fit all" when it comes to a suit of clothes, no single pension plan will fit best for every employee. Younger employees may have less money to contribute, but prefer to assume more risk. Conservative investors or those near retirement age should have conservative options. Employees with outside retirement assets may prefer to concentrate their company retirement funds in a single asset. Large companies may be able to offer many plans while small employers need to have simple plans, with simple rules.

Today's hearing follows a hearing held by the full committee last week. That hearing reviewed the recommendations made by the Administration and the views of several outside experts. Today we will hear from employers and employees - hear what works, what can be improved, and where changes might produce more harm than good.

I'm pleased to yield to my colleague, Mr. Coyne.