Bush says new rules will help guard 401(k)s

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WASHINGTON (CNN) -- U.S. President George W. Bush said his administration is taking steps Monday to "help strengthen the retirement security of America's workers" by adding more regulations to help them manage 401(k) accounts.

The moves are designed, in part, to reach out to worried investors three weeks before the November congressional elections.

In his weekly radio address, Bush said the regulations to be issued by the Labor Department require that companies give their workers 30 days notice before any 401(k) "blackout" periods -- times when workers are restricted from trading stock.

Companies also must notify employees about the reasons for the "blackout" period, and the beginning and end dates, or face a civil penalty, a senior administration official said Friday.

"This important protection will help ensure that workers don't get stuck in a bad investment simply because their employers block them from accessing their own account, Bush said.

The president also supports a rule being drawn up by the Securities and Exchange Commission that would prevent corporate officers and directors from trading in company stock whenever workers are kept from doing so.

"If you can't sell on the shop floor, you should not be able to sell on the top floor," Bush said.

Both rules -- based on laws he's signed -- will take effect early next year and should give workers "greater protections against corporate fraud or abuse," Bush said.

He criticized the Senate for failing to pass three other pension changes he proposed earlier this year which have passed in the House of Representatives.

More than 40 million Americans save for their retirement through their 401(k) accounts, Bush said.

CNN White House Correspondent Kelly Wallace contributed to this report.

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