Legislative History of the Employee Retirement Income Security Act of 1974

FOREWORD

Industrial pensions began in America more than 100 years ago and in the last 25 years, they have enjoyed enormous growth. Today, more than 30 million American workers are relying on private pension and welfare plans as a major source of economic security in old age. The assets of private pension arrangements increased from $2.4 billion in 1940 to more than $150 billion in 1975 making these funds one of the largest sources of private capital in the economy. These changes have radically altered the retirement security expectations of the American people.

But for the most part, this phenomenal growth was largely unregulated. While the absence of substantive requirements helped promote growth of the private system, the resulting plans set up difficult and sometimes insurmountable obstacles to plan participants.

Passage of this legislation is the end product of years of study and development by the Committee on Labor and Public Welfare. For their work in this effort, I wish to extend a special thanks to all of my colleagues on the Committee whose contributions and support made this landmark reform possible. A particular tribute must be reserved for the distinguished ranking minority member of the Committee (Mr. Javits) whose efforts dating back to 1967 awakened Congress to the need for comprehensive reform.

The Employee Retirement Income Security Act responded to the recommendations of the Senate study and to the objectives of a broad consensus for comprehensive reform. The new rules reflect a careful balance of incentives and controls designed by Congress to improve the equitable character of private plans while encouraging their future growth and development.

Implementation of the ERISA standards will demand an effective administration with a unique understanding of the impact of its requirements. To aid those responsible for its administration, I have asked the committee staff to compile this legislative history with the assistance of the Department of Labor under whose direction the indexes were prepared.

HARRISON A. WILLIAMS, Jr.,

(III)

Chairman.

ACKNOWLEDGMENT

The indexes for this legislative history of the Employee Retirement Income Security Act of 1974 and the Explanatory Notes for Using the Indexes were prepared by staff of the U.S. Department of Labor at the direction of Paul J. Fasser, Jr., Assistant Secretary of Labor for Labor-Management Relations. For the dedication of that staff to the project, and for the help of other employees who contributed significantly to the effort, I wish to express my appreciation, and my particular thanks to the following: Paul R. Antsen, Richard D. Ferrone (of the Office of the Solicitor), Neilda C. Lee, Edwin A. Silver, and Ellan H. Spring, who structured and compiled the indexes; Bruce M. Leet, who helped to plan and start the project; Richard T. Wood, who kept a chronicle of pension reform legislation; and John S. Hunter, who guided the project.

HARRISON A. WILLIAMS, Jr., Chairman.

(V)