Chairman Miller: Bush Administration’s Proposed Rules Would Further Jeopardize Workers’ Retirement Nest Eggs

Thursday, August 21, 2008

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement on two rules proposed by the U.S. Department of Labor today that could further undermine retirement savings plans that millions of American workers depend on.

“For far too long, the rules of the financial services industry have been tilted in the interests of companies and consultants, not the millions of American workers who are deeply worried about saving enough for a secure retirement. Now, the Bush administration is proposing to further tip the scales towards special interests by opening the door to conflicts of interest among the very consultants purporting to offer unbiased investment advice, and potentially allowing companies to reap windfall profits at the expense of America’s workers.

“With more and more workers having to dip into their nest eggs just to stay afloat in today’s economy, there is a clear and urgent need to ensure that workers are getting the best deals possible on their 401(k) and other retirement plans. Instead, these proposals could make it much harder for workers to receive fair and honest advice when making key financial decisions about their futures.

“In its final months in office, this administration has developed a disgraceful pattern of sneaking in last-minute regulatory changes at the behest of special interests. At a time when Americans’ retirement accounts have already been pummeled by the nation’s economic downturn, it is deeply extremely troubling that the department is trying to push through proposals that would further jeopardize workers’ hard-earned savings. Indeed, the rules proposed by the administration today are nothing less than a boon for Wall Street and corporate executives, and I urge the Department to immediately withdraw these harmful proposals.”

Miller is the author of legislation, the 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185), which would help workers shop around for the best retirement investment options by ensuring that workers receive full disclosures about the fees charged on their 401(k) plans. For more information on that bill, click here.

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