r18730 CONGRESSIONAL RECORD- HOUSE JJJ-ne 8, 1973 tion that an employee is going to work for from the pension fund after his 8th year, five, or more jobs during his lifetime one company all or most of his career, and would have 100-percent vestment due to the mobility of this country's job and second, that a company will stay in after 15 years of service. market. Often a person will join a pen­ business forever in the same or expanded Many private pension plans lack ade­ sion plan each time he is employed and condition as it was when it installed its quate funding. Some companies put less then forfeits that money when he moves pension plan. money in the fund than they are re­ to a new place of employment. Conse­ We must realize, as the American quired to do by the pension agreement. quently, when he retires, all that money worker has realized, that we are in a mo­ Others switch the money to different ac­ is lost. This is obviously unfair. Thus, bile job market economy, where men and counts for their own purposes. Conse­ this bill creates a fund where deposits women frequently change their jobs. We quently, at times of financial crisis, a will be made by a member plan upon must realize too that our economy is go­ company may not be able to meet its ob­ request of the participant, equal to the ing through constant overhauling, which ligation to pay the participant the money current discounted value of the partici­ affects the security and stability of the he is owed. If a company goes bankrupt pant's vested right under the plan. I can­ Nation's workers. With such mobility and pension plans are at the bottom of the not stress strongly enough the impor­ such change in our economic policies, we list of debts to be paid off. It is the in­ tance of this type of program. If such a must improve the system of private pen­ terest of employers to provide adequate program is not passed with the other sion plans. We need to give to the Ameri­ financing of pension plans. A 65-year-old proposals in this bill, the problems that can worker the security he is entitled to, retiree with 35 years of work credit, on a now confront us in the pension plan sys­ so that when he retires he will be able to pension plan of $300 a month will, on the tem will remain unsolved. A worker may support himself adequately. average, receive $51,840 during the re­ have all the vesting rights he deserves, Last year the Senate Labor Subcom­ mainder of his life. If the company, in the adequate funding necessary to meet mittee released a preliminary report on order to insure this payment, puts away the requirements of his pension agree­ the private pension plan system. The the money at the time of his retirement ment, a federally backed guarantee, but study reviewed 51 plants having a total and not before, the total amount required still not receive one penny of pension of $10 billion in assets. The private pen­ to pay this employee this money would be money because during his lifetime he sion plans at these plants provided for $38,675. But if the company puts the has a number of different jobs. no vesting or 11 or more years of employ­ money into a fund in each of the 35 years CONCLUSION ment before vesting. Over a 20-year per­ this person is employed, it would cost the Our end goal-the spirit of this bill­ iod, only 5 percent of all participants who firm only $16,640 or $475.44 a year. In is to provide the needed security the left their jobs between 1950 and 1970 re­ other words, the funded cost is only 32 retired worker is entitled to have. The ceived benefits from their pension plan. percent of the pay-as-you-go or un­ recent social security benefit increases In contrast, in 36 plants with assets of $6 funded cost. were in this spirit. But more must be billion with 10 years of vesting or less, 16 REINSURANCE PROTECTION done. We must protect the worker from percent of all participants who left since The assets of private pension plans are the policies of some employers who do 1950 have received benefits. Workers who larger than the assets of the federally not adequately fund pension plans. We have participated in pension plans have run social security program, yet no Fed­ must provide the American worker with seen their retirement income go down the eral insurance is available for these the right to receive these payments if he drain due to either layoffs, job switches, plans. We insure the banks of this coun­ desires to retire before the age of 65 or early retirement, or faulty employer try, and require their proper manage­ is laid off prematurely. A few years ago practices. ment, why not the pension plans which Congress passed the Securities Investor THE PENSION REINSURANCE AND PROTECTION ACT cover millions of workers and contain Protection Act establishing a Federal OF 1973 billions of dollars? The bill I am propos­ Insurance corporation to guarantee stock The bill I am introducing today would ing will require sound management and market investors and market speculators help to remedy this problem. It would Federal reinsurance of these pension against losses due to financial difficulties give the participant a vesting right after plans. in brokerage firms. It is time we pass a 8 years of service at 30 percent, with a PORTABILITY Pension Protection Act that will protect the millions of American workers from yearly increase of 10 percent thereafter. Finally we come to one of the most inadequate pension funding and give to Thus a participant in any private pen­ important aspects of this bill-porta­ these many million people the security sion program would receive some money bility. Many a worker has three, four, to which they are entitled. HOUSE OF REPRESENTATIVES-Friday, June 8, 1973 The House met at 12 o'clock noon. may be in the path of Thy holy will The message also announced that the The Chaplain, Rev. Edward G. Latch, ministering to the welfare of our coun­ Senate had passed a bill of the following D.D., offered the following prayer: try and meeting the needs of our people; title, in which the concurrence of the I will lift up mine eyes unto the hills, through Jesus Christ our Lord. Amen. House is requested: from whence cometh my help.-Psalms S. 71. An act for the relief of Uhel D. Polly. 121: 1. THE JOURNAL 0 God, our Father, we thank Thee for the morning and for the gift of another The SPEAKER. The Chair has exam­ INFLATION AND PRICES REACH NEW day. Through all its hours help us to ined the Journal of the last day's pro­ HIGHS walk humbly with Thee and to live hap­ ceedings and announces to the House his approval thereof. (Mr. TAYLOR of North Carolina asked pily with our fellow men. Give to us Without objection, the Journal stands and was given permission to address the health of body, cleanliness of mind, and approved. House for 1 minute, to revise and extend generosity of spirit that we may do our There wa.s no objection. his remarks and include extraneous mat­ work with all our hearts. We would work ter.) to make our dreams come true and Mr. TAYLOR of North Carolina. Mr. dream to make our work worth doing. MESSAGE FROM THE SENATE Speaker, news that wholesale prices last Deliver us from fears that frustrate A message from the Senate by Mr. month soared at an annual rate of 24 us, from bitterness that belittles us, and Arrington, one of its clerks, announced percent emphasizes again that infia~ion from worries that weary us and wear us that the Senate had passed without has become our Nation's most pre~ing out. Grant unto us the faith that forti- amendment a bill of the House of the problem. Obviously, there has been no fies, the hope that heartens, and the love following title: break in the inflation spiral. that lifts us up. H.R. 4704. An act for the relief of certain I am informed today by the Economic Let Thy presence live in our hearts former employees of the Securities and Ex­ Research Service of the U.S. Department that our coming 1n and our going out change Commission. of Agriculture that soybean meal has June 8, 1973 CONGRESSIONAL RECORD-HOUSE 18731 jumped from $93.50 per ton in June 1972 Yet the President still refuses to im­ This conference agreement contains a to a recent high of $450 per ton and No. pose wage-p1ice controls, as the Con­ bare-bones authorization of $430 million 2 yellow corn from $1.25 to $2.59 per gress has authorized him to do, or to deal to continue the economic development bushel during the same pe1iod. Such wild in any way with this major problem. The programs--reduced by more than 60 price increases in feed grain costs spell economy has become a national crisis. percent from the $1.2 billion which the disaster for the farmer producing live­ House approved last March. The $430 stock, milk, and poultry products and for million in the bill now is the absolute the consumer. CONFERENCE REPORT ON H.R . minimum required to keep the economic We read that the President is consid­ 2246, EXTENDING PUBLIC WORKS development programs alive while Con­ ering steps to cool the economy, but so AND ECONOMIC DEVELOPMENT gress conducts an in depth review of all far administration policies have been too ACT OF 1965 aspects of our efforts to promote eco­ weak and too late.