[105th Congress Public Law 92]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ92.105]
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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
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``(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;
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``(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;
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``(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
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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:
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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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