Pete Stark: “I oppose H.R. 2269, the falsely named Retirement Security Advice Act of 2001, introduced by Representative Boehner. The…”

“I oppose H.R. 2269, the falsely named Retirement Security Advice Act of 2001, introduced by Representative Boehner. The bill not only neglects to provide any type of security for workers' retirement, but it actually puts worker retirement plans at greater risk for fraudulent activity. Workers need independent financial advice, not advice plagued by self-interest. Current pension law ensures that those who manage or administer assets of a pension plan cannot engage in any transaction under the plan in which they have a financial or other conflict of interest. These rules, known as the prohibited transaction rules, are designed to ensure that the best interest of the investor is maintained. When these rules are eliminated, as H.R. 2269 calls for, the integrity of the pension system is threatened by fraud and abuse. For example, one of our nation's premier investment companies, Prudential, in 1996, agreed to pay at least $410 million in restitution and fines to compensate investors who suffered losses to fraud as far back as 1980.”