The Principal Financial Group Urges Action Now on Complex 403(b) Rule Changes
December 20, 2007 (Des Moines, Iowa) — As the New Year approaches, 403(b) plan sponsors face a host of complex decisions sparked by new regulations issued last summer. They must sort through a variety of complicated options in order to bring their 403(b) plans into compliance by January of 2009. Experts from the Principal Financial Group®, are urging these plan sponsors to take action now and are offering a comprehensive education program to help.
"403(b) plan sponsors should begin developing strategies to comply with the new regulations now, said Paul Fromm, second vice-president, Retirement and Investor Services, The Principal®. "These regulations can be daunting, but with an early start and help from The Principal, plan sponsors will be in a good position. We've created tools that can offer a smoother transition."
To help financial professionals and their clients navigate this major transition, The Principal—which provides services to 4,885 non-profit plans, covering nearly 550,000 participants1—has created a comprehensive program. In addition to providing support to help comply with the new requirements, The Principal is offering two white papers and an easy-to-use guide that summarize the regulations and provide analysis of their implications:
- "A 403(b) Plan Sponsor's Guide to the New Final 403(b) Regulations" by renowned 403(b) expert, David Powell of the Groom Law Group — the largest employee benefits law firm in the nation — is a white paper that provides in-depth analysis of the new regulations.
- "Practical Implications of the 403(b) Regulations" by Aaron Friedman, National Practice Leader, Non Profit Consulting at The Principal, is a white paper that analyzes the advantages and disadvantages of various options facing 501(c)(3) organizations for bringing their plans into compliance with the new rules.
- "The 403(b) Guide" provides an easy-to-follow snapshot of key provisions before and after the new regulations
The white papers and 403(b) guide are available at the Principal Research Center at http://www.principal.com/about/news/research.htm. The research center also houses other insight into 403(b) plans. In 2005, The Principal commissioned leading ERISA expert Fred Reish, partner and managing director of the law firm of Reish Luftman Reicher & Cohen, to create a white paper educating not-for-profit employers and their financial advisors on the particulars of ERISA obligations.
About Groom Law Group
Groom Law Group's over 50 attorneys practice in all aspects of employee benefits law. The firm represents many of America's largest companies, financial institutions, multiemployer plan sponsors and not-for-profit organizations, and is one of the only national law firms with a team of lawyers specializing in employee benefits for not-for-profit, governmental and church employers. Combining a broad view of the benefits landscape with in-depth technical expertise, the firm's attorneys spot key trends for their clients, prepare them for new laws and regulations and provide them with practical and comprehensive strategies for addressing and resolving benefits issues.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)2 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $306 billion in assets under management3 and serves some 18.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
Insurance issued by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, member SIPC and/or independent broker dealers. Securities sold by a Princor Registered Representative are offered through Princor®. Bank Products offered through Principal Bank®, member FDIC, Equal Housing Lender. Principal Life, Princor and Principal Bank are members of the Principal Financial Group, Des Moines IA 50392.
Insurance and securities are not insured by the FDIC; are not obligations or deposits of Principal Bank nor guaranteed by Principal Bank; and are subject to investment risks, including possible loss of the principal invested.
1) As of September 30, 2007
2) "The Principal Financial Group" and "The Principal" are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group.
3) As of September 30, 2007.
