Nancy Kassebaum: “If I may respond briefly to my good friend and colleague and member of the Labor Committee as well, some clarification…”

“If I may respond briefly to my good friend and colleague and member of the Labor Committee as well, some clarification on the Harris Trust. I have spoken earlier to it and I will not reiterate. I certainly agree, ERISA is complicated. It is something all of us struggle to understand. In this particular situation, as I pointed out, the administration is strongly for this. This particular language in the managers' amendment does not overturn the Harris Trust. What it does is require the Labor Department to issue guidance by March of next year as to how insurance companies are to deal with pension plans in the future. Because the Supreme Court decision created some concerns about how these would be handled as plan assets, there needs to be a clarification. Until that clarification is given, much is in doubt, and many workers will be seriously hampered by uncertainty regarding their pension plans and how it would be counted as a plan asset. I just suggest to the Senator from Illinois, we made two changes which we hoped would address some of the concerns that had been raised by the Senator from Illinois. One was the legislation would not grant relief from proceedings based on fraudulent or criminal activities by insurers. I know that had been a concern. That language is now clearly stated. Second, that the legislation gives the Secretary of Labor authority to ensure that insurers do not engage in prohibited transactions prior to the issuance of final guidelines.”