Doris Matsui: “I have to say what happened with the Enron situation was not unique because this is going to happen more and more.…”

“I have to say what happened with the Enron situation was not unique because this is going to happen more and more. Essentially what has happened is CEOs and top management people in many corporations have set up a plan that basically violates the principles of our pension laws. Ken Lay, for example, was able to get deferred compensation, that is, he did not have to pay any taxes on his retirement program. Yet when Enron filed bankruptcy, he was able to collect about $2 million from that plan, whereas every other Enron employee lost valuable assets in their 401(k) plan. This would merely tighten that up and make it consistent where Members of both the House and the Senate, and certainly Democrats and Republicans would not want anyone to be able to defer taxes, and at the same time be able to get a fully funded program that is protected from bankruptcy. Mr. Speaker, this has to be tightened up. This is closing a loophole. This is something that we cannot allow to happen as we see more and more of these Enron scandals occur.”