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by: After taking in a panoramic view of the ongoing Enron fiasco, you could say, "What goes around comes around." But that would not tell the full story of what Enron has meant to the average American household. Full-speed-ahead greed created a seemingly profitable company that made its executives rich. This identical approach also brought the company to its knees. However, many of those who benefited from the rise of Enron were not punished when the company fell. Enron executives were granted special dispensations to extract all or large portions of their pensions and retirements savings before the company lost its value. The real victims here were the average employees and investors, most of whom had their retirement accounts frozen while Enron collapsed. People with savings they had worked a lifetime to earn helplessly watched their nest eggs disappear as Enron's stock plummeted to pennies a share. Enron may be based in Houston, but the financial havoc it wreaked on the lives of families and individuals is not a Texas problem. It is an American problem, and, sadly, a Pennsylvania problem as well. So far, more than $95 million in fund assets have been lost to the Public School Employees pension fund, State Employees Retirement System, and the Commonwealth -- all thanks to Enron. Pennsylvania's counties have also experienced significant losses. Recent reports indicate that at least four counties lost more than $500,000 in investment funds. And that is just what we know right now. It is obvious that steps must be taken to ensure prevention of future Enron-like scenarios. Admittedly, many of the required remedies are available only at the federal level. Still, there is much we can do right here in this Commonwealth to protect our citizens and their hard-earned retirement savings. Pennsylvania's Senate Democrats have responded aggressively with a sweeping package of bills and resolutions that we call our Working Family Retirement Savings and Pension Protection Plan. The first step we took under this plan was a resolution urging Attorney General Mike Fisher to take whatever action is required to recover state funds lost through the Enron debacle. While we introduced this resolution more than a month ago, I am sorry to say that we have seen no evidence that the attorney general has taken any action to date. Our pension protection plan comprises two other resolutions. One orders the Joint State Government Commission to conduct a complete examination of state laws governing pension and retirement savings. The other asks Congress to seek full disclosure of information related to meetings between Vice President Dick Cheney and energy officials, including Enron executives and employees. Senate Democrats also have drafted legislation that would greatly improve pension and retirement protections for working families. Three of these bills would increase prison time for fraud and double the civil penalties and fines for fraud-related activities under the Pennsylvania securities code. Another of our bills would create a legal firewall preventing the same consultant that performs pension accounting/auditing work for a firm from also serving as that firm's financial adviser. Arthur Andersen served in both capacities for Enron, and this dual, conflicting role played no small part in Enron's demise. Finally, our legislative package also would protect accountants who bravely come forward and "blow the whistle" on illegal or unethical activities. The financial misfortunes that befell all those who trusted and relied on Enron to enrich and protect their retirement savings should never have happened in this first place. The time to respond is long overdue. Pennsylvania cannot afford to sit around and let the federal government handle it. Our Working Family Retirement Savings and Pension Protection Plan offers real answers, and it offers them now. Archives: Rep. Kelly Lewis --
(R-Monroe) Rep. Richard Allen Geist
-- (R-Blair) |
