By Erin Corcoran

After more than 20 years on Capitol Hill, Harry M. Reid (D-NV) was elected Senate Majority Leader in November 2006. "When I took this position at the beginning of this Congress, Democrats pledged to focus on issues that the majority of Americans care about, and, so far, this session we have made excellent progress," Reid says.

Indeed, many agree with Reid's assessment. Under his watch, the Senate has passed ethics reform and energy legislation, enacted recommendations made by the 9/11 commission and passed higher education legislation.

However, Reid says that while he is pleased with the progress, the Senate has only scratched the surface of its goals. "I am grateful for this progress, but there is still much to do."

Portfolio sat down with Reid to discuss issues such as retirement savings and energy independence.

On Retirement Savings

Preserving and protecting the retirement savings of American workers has been a key issue in Washington in recent years. The Employment Retirement Income Security Act (ERISA) sets minimum standards for pension plans in private industry but does not require any employer to establish a pension plan. Congress enacted the Pension Protection Act in 2006 (PPA) as the largest change to pensions since ERISA's inception.

Reid says that finding ways to help Americans plan and save for their retirement is one of the most important policy challenges facing Congress. "Last year's Pension Protection Act included several measures that will help Americans save for retirement and preserve and protect these savings so that they will be available when needed."

The legislation also makes it easier for employers to automatically enroll employees into 401(k) plans and helps workers make appropriate investment decisions by allowing employers to offer unbiased investment advice to their workers.

To ensure that employee investments are properly diversified, the bill also requires employers who sponsor defined contribution plans that include employer securities to allow workers to switch to other investments. "As workers are left to assume more responsibility for their retirements, Congress will continue to explore ways

to help them meet this challenge," Reid says. "Additionally, we will continue to look for ways to encourage employers to offer pension plans to their employees and to help secure the retirement benefits that workers have already earned."

Reid, an advocate of the small investor, says that an investor will want to choose options in their investment portfolio that provide diversification and liquidity. "Having multiple sectors represented in any investment portfolio, including REITs and other asset classes, helps to build diversification."

On Energy Independence

This year has brought to light many energy independence issues that face Americans. Under Reid's guidance, the Senate passed energy legislation that included incentives to encourage the construction of energy-efficient buildings as well as promote conservation. He says he intends to bring climate-change legislation before Congress this year.

"The owners of our nation's building stock have a significant role to play. Commercial tenants are demanding more efficient, environmentally friendly and healthy spaces for their workers. I am encouraged by the reaction of the financial markets, which are beginning to finance these types of commercial buildings at a discount, recognizing that both the energy savings and resistance to obsolescence will be greater in these types of buildings."

Additionally, Reid says that the REIT industry is poised to be a leader in energy efficiency in both new and existing buildings across the country. "I applaud NAREIT, the REIT industry's representative association, for its efforts to encourage its members to be more cognizant of the environment and also to acknowledge those members that are doing so."