Text: H.R.1377 — 105th Congress (1997-1998)All Information (Except Text)

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Public Law No: 105-92 (11/19/1997)

 
[105th Congress Public Law 92]
[From the U.S. Government Printing Office]


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[DOCID: f:publ92.105]


[[Page 111 STAT. 2139]]

Public Law 105-92
105th Congress

                                 An Act


 
To <<NOTE: Nov. 19, 1997 -  [H.R. 1377]>> amend title I of the Employee 
 Retirement Income Security Act of 1974 to encourage retirement income 
                                savings.

    Be <<NOTE: Savings Are Vital to Everyone's Retirement Act
of 1997.>> it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT <<NOTE: 29 USC 1001 note.>> TITLE.

    This Act may be cited as the ``Savings Are Vital to Everyone's 
Retirement Act of 1997''.

SEC. 2. FINDINGS AND <<NOTE: 29 USC 1146 note.>> PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) The impending retirement of the baby boom generation 
        will severely strain our already overburdened entitlement 
        system, necessitating increased reliance on pension and other 
        personal savings.
            (2) Studies have found that less than a third of Americans 
        have even tried to calculate how much they will need to have 
        saved by retirement, and that less than 20 percent are very 
        confident they will have enough money to live comfortably 
        throughout their retirement.
            (3) A leading obstacle to expanding retirement savings is 
        the simple fact that far too many Americans--particularly the 
        young--are either unaware of, or without the knowledge and 
        resources necessary to take advantage of, the extensive benefits 
        offered by our retirement savings system.

    (b) Purpose.--It is the purpose of this Act--
            (1) to advance the public's knowledge and understanding of 
        retirement savings and its critical importance to the future 
        well-being of American workers and their families;
            (2) to provide for a periodic, bipartisan national 
        retirement savings summit in conjunction with the White House to 
        elevate the issue of savings to national prominence; and
            (3) to initiate the development of a broad-based, public 
        education program to encourage and enhance individual commitment 
        to a personal retirement savings strategy.

SEC. 3. OUTREACH BY THE DEPARTMENT OF LABOR.

    (a) In General.--Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) is 
amended by adding at the end the following new section:

[[Page 111 STAT. 2140]]

             ``outreach to promote retirement income savings

    ``Sec. 516. <<NOTE: 29 USC 1146.>> (a) In General.--The Secretary 
shall maintain an ongoing program of outreach to the public designed to 
effectively promote retirement income savings by the public.

    ``(b) Methods.--The Secretary shall carry out the requirements of 
subsection (a) by means which shall ensure effective communication to 
the public, including publication of public service announcements, 
public meetings, creation of educational materials, and establishment of 
a site on the Internet.
    ``(c) Information To Be Made Available.--The information to be made 
available by the Secretary as part of the program of outreach required 
under subsection (a) shall include the following:
            ``(1) a description of the vehicles currently available to 
        individuals and employers for creating and maintaining 
        retirement income savings, specifically including information 
        explaining to employers, in simple terms, the characteristics 
        and operation of the different retirement savings vehicles, 
        including the steps to establish each such vehicle; and
            ``(2) information regarding matters relevant to establishing 
        retirement income savings, such as--
                    ``(A) the forms of retirement income savings;
                    ``(B) the concept of compound interest;
                    ``(C) the importance of commencing savings early in 
                life;
                    ``(D) savings principles;
                    ``(E) the importance of prudence and diversification 
                in investing;
                    ``(F) the importance of the timing of investments; 
                and
                    ``(G) the impact on retirement savings of life's 
                uncertainties, such as living beyond one's life 
                expectancy.

    ``(d) Establishment of Site on the Internet.--The Secretary shall 
establish a permanent site on the Internet concerning retirement income 
savings. The site shall contain at least the following information:
            ``(1) a means for individuals to calculate their estimated 
        retirement savings needs, based on their retirement income goal 
        as a percentage of their preretirement income;
            ``(2) a description in simple terms of the common types of 
        retirement income savings arrangements available to both 
        individuals and employers (specifically including small 
        employers), including information on the amount of money that 
        can be placed into a given vehicle, the tax treatment of the 
        money, the amount of accumulation possible through different 
        typical investment options and interest rate projections, and a 
        directory of resources of more descriptive information;
            ``(3) materials explaining to employers in simple terms, the 
        characteristics and operation of the different retirement 
        savings arrangements for their workers and what the basic legal 
        requirements are under this Act and the Internal Revenue Code of 
        1986, including the steps to establish each such arrangement;
            ``(4) copies of all educational materials developed by the 
        Department of Labor, and by other Federal agencies in 
        consultation with such Department, to promote retirement income 
        savings by workers and employers; and

[[Page 111 STAT. 2141]]

            ``(5) links to other sites maintained on the Internet by 
        governmental agencies and nonprofit organizations that provide 
        additional detail on retirement income savings arrangements and 
        related topics on savings or investing.

    ``(e) Coordination.--The Secretary shall coordinate the outreach 
program under this section with similar efforts undertaken by other 
public and private entities.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act is amended by inserting after the item relating to section 514 
the following new items:

``Sec. 515. Delinquent contributions.
``Sec. 516. Outreach to promote retirement income savings.''.

SEC. 4. NATIONAL SUMMIT ON RETIREMENT SAVINGS.

    (a) In General.--Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974, as amended by section 3 of this 
Act, is amended by adding at the end the following new section:

                 ``national summit on retirement savings

    ``Sec. 517. <<NOTE: President. 29 USC 1147.>> (a) Authority To Call 
Summit.--Not later than July 15, 1998, the President shall convene a 
National Summit on Retirement Income Savings at the White House, to be 
co-hosted by the President and the Speaker and the Minority Leader of 
the House of Representatives and the Majority Leader and Minority Leader 
of the Senate. Such a National Summit shall be convened thereafter in 
2001 and 2005 on or after September 1 of each year involved. Such a 
National Summit shall--
            ``(1) advance the public's knowledge and understanding of 
        retirement savings and its critical importance to the future 
        well-being of American workers and their families;
            ``(2) facilitate the development of a broad-based, public 
        education program to encourage and enhance individual commitment 
        to a personal retirement savings strategy;
            ``(3) develop recommendations for additional research, 
        reforms, and actions in the field of private pensions and 
        individual retirement savings; and
            ``(4) disseminate the report of, and information obtained 
        by, the National Summit and exhibit materials and works of the 
        National Summit.

    ``(b) Planning and Direction.--The National Summit shall be planned 
and conducted under the direction of the Secretary, in consultation 
with, and with the assistance of, the heads of such other Federal 
departments and agencies as the President may designate. Such assistance 
may include the assignment of personnel. The Secretary shall, in 
planning and conducting the National Summit, consult with the 
congressional leaders specified in subsection (e)(2). The Secretary 
shall also, in carrying out the Secretary's duties under this 
subsection, consult and coordinate with at least one organization made 
up of private sector businesses and associations partnered with 
Government entities to promote long-term financial security in 
retirement through savings.
    ``(c) Purpose of National Summit.--The purpose of the National 
Summit shall be--
            ``(1) to increase the public awareness of the value of 
        personal savings for retirement;

[[Page 111 STAT. 2142]]

            ``(2) to advance the public's knowledge and understanding of 
        retirement savings and its critical importance to the future 
        well-being of American workers and their families;
            ``(3) to facilitate the development of a broad-based, public 
        education program to encourage and enhance individual commitment 
        to a personal retirement savings strategy;
            ``(4) to identify the problems workers have in setting aside 
        adequate savings for retirement;
            ``(5) to identify the barriers which employers, especially 
        small employers, face in assisting their workers in accumulating 
        retirement savings;
            ``(6) to examine the impact and effectiveness of individual 
        employers to promote personal savings for retirement among their 
        workers and to promote participation in company savings options;
            ``(7) to examine the impact and effectiveness of government 
        programs at the Federal, State, and local levels to educate the 
        public about, and to encourage, retirement income savings;
            ``(8) to develop such specific and comprehensive 
        recommendations for the legislative and executive branches of 
        the Government and for private sector action as may be 
        appropriate for promoting private pensions and individual 
        retirement savings; and
            ``(9) to develop recommendations for the coordination of 
        Federal, State, and local retirement income savings initiatives 
        among the Federal, State, and local levels of government and for 
        the coordination of such initiatives.

    ``(d) Scope of National Summit.--The scope of the National Summit 
shall consist of issues relating to individual and employer-based 
retirement savings and shall not include issues relating to the old-age, 
survivors, and disability insurance program under title II of the Social 
Security Act.
    ``(e) National Summit Participants.--
            ``(1) In general.--To carry out the purposes of the National 
        Summit, the National Summit shall bring together--
                    ``(A) professionals and other individuals working in 
                the fields of employee benefits and retirement savings;
                    ``(B) Members of Congress and officials in the 
                executive branch;
                    ``(C) representatives of State and local 
                governments;
                    ``(D) representatives of private sector 
                institutions, including individual employers, concerned 
                about promoting the issue of retirement savings and 
                facilitating savings among American workers; and
                    ``(E) representatives of the general public.
            ``(2) Statutorily required participation.--The participants 
        in the National Summit shall include the following individuals 
        or their designees:
                    ``(A) the Speaker and the Minority Leader of the 
                House of Representatives;
                    ``(B) the Majority Leader and the Minority Leader of 
                the Senate;
                    ``(C) the Chairman and ranking Member of the 
                Committee on Education and the Workforce of the House of 
                Representatives;
                    ``(D) the Chairman and ranking Member of the 
                Committee on Labor and Human Resources of the Senate;

[[Page 111 STAT. 2143]]

                    ``(E) the Chairman and ranking Member of the Special 
                Committee on Aging of the Senate;
                    ``(F) the Chairman and ranking Member of the 
                Subcommittees on Labor, Health and Human Services, and 
                Education of the Senate and House of Representatives; 
                and
                    ``(G) the parties referred to in subsection (b).
            ``(3) Additional participants.--
                    ``(A) In general.--There shall be not more than 200 
                additional participants. Of such additional 
                participants--
                          ``(i) one-half shall be appointed by the 
                      President, in consultation with the elected 
                      leaders of the President's party in Congress 
                      (either the Speaker of the House of 
                      Representatives or the Minority Leader of the 
                      House of Representatives, and either the Majority 
                      Leader or the Minority Leader of the Senate; and
                          ``(ii) one-half shall be appointed by the 
                      elected leaders of Congress of the party to which 
                      the President does not belong (one-half of that 
                      allotment to be appointed by either the Speaker of 
                      the House of Representatives or the Minority 
                      Leader of the House of Representatives, and one-
                      half of that allotment to be appointed by either 
                      the Majority Leader or the Minority Leader of the 
                      Senate).
                    ``(B) Appointment requirements.--The additional 
                participants described in subparagraph (A) shall be--
                          ``(i) appointed not later than January 31, 
                      1998;
                          ``(ii) selected without regard to political 
                      affiliation or past partisan activity; and
                          ``(iii) representative of the diversity of 
                      thought in the fields of employee benefits and 
                      retirement income savings.
            ``(4) Presiding officers.--The National Summit shall be 
        presided over equally by representatives of the executive and 
        legislative branches.

    ``(f) National Summit Administration.--
            ``(1) Administration.--In administering this section, the 
        Secretary shall--
                    ``(A) request the cooperation and assistance of such 
                other Federal departments and agencies and other parties 
                referred to in subsection (b) as may be appropriate in 
                the carrying out of this section;
                    ``(B) furnish all reasonable assistance to State 
                agencies, area agencies, and other appropriate 
                organizations to enable them to organize and conduct 
                conferences in conjunction with the National Summit;
                    ``(C) <<NOTE: Public information.>> make available 
                for public comment a proposed agenda for the National 
                Summit that reflects to the greatest extent possible the 
                purposes for the National Summit set out in this 
                section;
                    ``(D) prepare and make available background 
                materials for the use of participants in the National 
                Summit that the Secretary considers necessary; and
                    ``(E) appoint and fix the pay of such additional 
                personnel as may be necessary to carry out the 
                provisions of this section without regard to provisions 
                of title 5, United States Code, governing appointments 
                in the competitive

[[Page 111 STAT. 2144]]

                service, and without regard to chapter 51 and subchapter 
                III of chapter 53 of such title relating to 
                classification and General Schedule pay rates.
            ``(2) Duties.--The Secretary shall, in carrying out the 
        responsibilities and functions of the Secretary under this 
        section, and as part of the National Summit, ensure that--
                    ``(A) the National Summit shall be conducted in a 
                manner that ensures broad participation of Federal, 
                State, and local agencies and private organizations, 
                professionals, and others involved in retirement income 
                savings and provides a strong basis for assistance to be 
                provided under paragraph (1)(B);
                    ``(B) <<NOTE: Federal Register, publication.>> the 
                agenda prepared under paragraph (1)(C) for the National 
                Summit is published in the Federal Register; and
                    ``(C) the personnel appointed under paragraph (1)(E) 
                shall be fairly balanced in terms of points of views 
                represented and shall be appointed without regard to 
                political affiliation or previous partisan activities.
            ``(3) Nonapplication of faca.--The provisions of the 
        Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
        to the National Summit.

    ``(g) Report.--The Secretary shall prepare a report describing the 
activities of the National Summit and shall submit the report to the 
President, the Speaker and Minority Leader of the House of 
Representatives, the Majority and Minority Leaders of the Senate, and 
the chief executive officers of the States not later than 90 days after 
the date on which the National Summit is adjourned.
    ``(h) Definition.--For purposes of this section, the term `State' 
means a State, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin 
Islands, American Samoa, and any other territory or possession of the 
United States.
    ``(i) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        for fiscal years beginning on or after October 1, 1997, such 
        sums as are necessary to carry out this section.
            ``(2) Authorization to accept private contributions.--In 
        order to facilitate the National Summit as a public-private 
        partnership, the Secretary may accept private contributions, in 
        the form of money, supplies, or services, to defray the costs of 
        the National Summit.

    ``(j) Financial Obligation for Fiscal Year 1998.--The financial 
obligation for the Department of Labor for fiscal year 1998 shall not 
exceed the lesser of--
            ``(1) one-half of the costs of the National Summit; or
            ``(2) $250,000.

The private sector organization described in subsection (b) and 
contracted with by the Secretary shall be obligated for the balance of 
the cost of the National Summit.
    ``(k) Contracts.--The Secretary may enter into contracts to carry 
out the Secretary's responsibilities under this section. The Secretary 
shall enter into a contract on a sole-source basis to ensure the timely 
completion of the National Summit in fiscal year 1998.''.

[[Page 111 STAT. 2145]]

    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act, as amended by section 3 of this Act, is amended by inserting 
after the item relating to section 516 the following new item:

``Sec. 517. National Summit on Retirement Savings.''.

    Approved November 19, 1997.

LEGISLATIVE HISTORY--H.R. 1377:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-104 (Comm. on Education and the Workforce).
CONGRESSIONAL RECORD, Vol. 143 (1997):
            May 21, considered and passed House.
            Nov. 7, considered and passed Senate, amended.
            Nov. 9, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):
            Nov. 19, Presidential statement.

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