By Matthew Bechard

Since joining Congress in 1993, Rep. Deborah Pryce (R-OH), a former prosecutor and judge, has risen through the ranks to become chair of the House Republican Conference, making her the fourth-highest ranking member and highest ranking Republican woman ever in the House. Pryce's background and reputation as a consensus builder in her role as Deputy Whip have earned her the nickname of the "Peacemaker."

Rep. Pryce serves on the House Committee on Financial Services, where she serves as chair of the Domestic and International Monetary Policy Subcommittee. The panel has jurisdiction over the Federal Reserve, U.S. monetary policy, financial services technology issues, currency and coinage, and economic growth.

Pryce recently spoke with Portfolio about a number of issues including extending the Terrorism Risk Insurance Act, strengthening the Social Security program and preserving workers' retirement security, and the increasing number of women on the Hill.

On Terrorism Insurance

As this issue went to press, Congress approved legislation extending the nation's terrorism insurance backstop. The Terrorism Risk Insurance Act (TRIA) has been a tremendous success since its inception in November 2002 and legislators, including Pryce, understood its virtues and worked to see the program extended into 2006.

"TRIA has succeeded in its limited goal of providing availability of terrorism insurance," Pryce says. "The House bill extending the TRIA program will provide for the continued availability of terrorism insurance, and will encourage the development of private capital that will allow the government to gradually leave the market."

TRIA requires insurers to make terrorism coverage available to commercial policyholders on the same terms and conditions as other offered lines of coverage. In return, TRIA provides reinsurance above certain levels to the insurers who make available coverage against acts of foreign terrorism.

Unlike risk from natural catastrophes, there is no way for companies to effectively model terrorism risk, because the frequency and scale of attacks are even less quantifiable, Pryce says.

"There is also very limited reinsurance capacity for terrorism risk when compared to natural catastrophes," she says. "This underscored the necessity for Congress to act responsibly and extend TRIA."

On Retirement Security

Preserving workers' retirement security is a hot topic on the Hill. Between debates over what to do with America's Social Security system and issues related to retirement savings accounts, legislators are wrestling with matters that could impact retirees for decades to come.

At the forefront of this debate is the state of Social Security.

"There is no doubt that the structure that has funded the Social Security program—today's workers paying today's beneficiaries—is unsustainable," Pryce says.

In her view, Social Security needs to be permanently strengthened without raising payroll taxes and without changing Social Security benefits for today's retirees and near retirees. One way that this can be done is by allowing workers to invest in higher-yield instruments and deciding where their money is invested. This is an idea that Pryce says "deserves serious consideration."

"I believe America's workers are entitled to a fair return on their hard-earned retirement savings, and I support ensuring that Social Security dollars are spent on just that, Social Security," Pryce says.

Improving workers' retirement saving options is also at the crux of the Real Estate Investment Thrift Savings (REITS) Act, H.R. 1578, which seeks to expand the asset allocation options in the Federal Thrift Savings Plan (TSP), the 401(k)-like plan for federal workers. The TSP has more than 3.4 million participants and $160 billion in assets. The REITS Act now has over 120 co-sponsors, including Pryce, and the TSP Board is currently reviewing the feasibility of increasing the investment options contained in the plan including a distinct REIT option.

"Adding a REIT index fund to the TSP would give federal employees an option that many in the private sector already enjoy," Pryce says. "Increased diversification means a better balanced retirement portfolio and the opportunity for increased returns."

On the Rise of Congresswomen

As a record number of women are serving in both the House and Senate today, the U.S. Congress is more diverse and representative of the nation than ever before.

"Since I was first elected to Congress, it has been extraordinarily encouraging and exciting to witness more women run in each election and more women win," Pryce says.

Pryce serves as a role model to a new generation of women entering politics and joining the ranks of the nation's leading policy-makers.

"It was only three years ago that I was elected by my colleagues to serve in the fourth-ranking leadership position in the House, making me the highest-ranking Republican woman ever to serve in the majority. This represented a significant achievement in my professional and personal life, and a milestone in the history of the House. It is an honor for me to serve in this capacity, and it is my hope that it will help encourage more young women across America to pursue their career goals, however lofty."