Statement of Administration Policy: H.R. 1000 - Pension Security Act of 2003

STATEMENT OF ADMINISTRATION POLICY

(House)

(Boehner (R) Ohio and 54 cosponsors)

The Administration strongly supports House passage of H.R. 1000, which encompasses important principles outlined in the President's Pension Retirement Security Plan. These principles were included in last year's pension reform bill that passed the House with significant bipartisan support. The Administration looks forward to working with Congress to ensure the legislation moves quickly through the process and is consistent with the President's budget.

Like the President's plan, this bill would strengthen workers' ability to manage their retirement funds by giving them more freedom to diversify their investments and by providing better information to workers through improved 401k and pension plan statements. The bill will also permit employers to provide their employees with access to professional investment advice. H.R. 1000 would give American workers access to information through expert advisers, who assume full fiduciary responsibility for their counsel and disclose relationships and fees associated with investment alternatives, so that they can make better retirement decisions. The bill also contains other important provisions that will help strengthen America's private retirement system.

The Administration will oppose legislation that discourages employers from sponsoring and making contributions to retirement plans for American workers and their families.

Pay-As-You-Go Scoring

The Budget Enforcement Act's pay-as-you-go requirements and discretionary spending caps expired on September 30, 2002. The Administration supports the extension of these budget enforcement mechanisms in a manner that ensures fiscal discipline and is consistent with the President's budget. OMB's cost estimate of this bill currently is under development.