THE WHITE HOUSE AT WORK
Thursday, March 26, 1998
WORKING TO ENCOURAGE PRIVATE SAVINGS
Today, the Clinton Administration announces several important savings education initiatives to encourage the American public to increase their savings to better prepare for retirement.
For five years, the Clinton Administration, working with the Congress, has helped to enhance the availability of retirement programs through various pension initiatives and more. But that is not enough. Today, only two-thirds of workers with the opportunity to participate in a 401(k) plan do so. We must continue to encourage people to take full advantage of their savings options -- and that requires a strong public education campaign.
Saver Summit On Retirement Income Savings. On June 4-5 of this year President Clinton, in conjunction with the Congressional leaders of both parties, will host the first national summit on retirement income savings. The Administration, in accordance with the SAVER Act, has chosen 100 summit participants, in close consultation with the Congressional Democratic leadership.
The participants, which include representatives of seniors' organizations, trade associations and labor unions, as well as small business owners, women's pension advocates, leaders of major financial services institutions, and top researchers, encompass a wide range of perspectives and knowledge concerning pension and savings issues.
Through the summit, employers will be provided information about the types of plans that are available, including traditional defined benefit pension plans, as well as a relatively new defined contribution plan that is especially designed for small businesses. The summit participants will also work to identify the best ways to educate workers about the importance and methods of saving for retirement.
Labor Department Retirement Education Public Service Announcements. The Department of Labor is unveiling a series of radio and television public service announcements designed to encourage people to save more for retirement. The public service announcements focus on the wide range of reasons for, and the consequences of, inadequate retirement savings.
Savings And Investing Education Campaign. A coalition of business, consumer and government organizations -- including the SEC, the New York Stock Exchange, the Treasury and Labor Departments, AARP and the National Association of Securities Dealers -- is launching a grassroots campaign on March 29 to help Americans become better informed about saving and investing, in order to avoid costly mistakes. The Facts on Saving and Investing Campaign is kicking off with a series of events the week of March 29 to April 4, including a National Roundtable on Saving and Investing on March 30. Securities regulators from 21 other North, Central and South American nations will also offer investor education programs in their countries next week.