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Helping Non-profits Ease into Daunting New Reporting Requirements

The Principal Gives Plan Sponsors a Practice Run

April 15, 2009 (Des Moines, IA) — Non-profit employers who sponsor 403(b) retirement plans have their work cut out for them. In 2010 they'll face rigorous new reporting requirements including submitting a full Form 5500[1] and, for larger plans, an independent plan audit.

The Principal Financial Group® is giving them a practice run by sending expanded Form 5500 packets now, along with life count and audit packages, to make the transition to the new reporting requirements easier.

"For the first time, ERISA 403(b) plan sponsors will face the same financial reporting and auditing requirements as 401(k) plans," said Aaron Friedman, national non-profit practice leader for The Principal®. "We're helping them ease into the hefty new reporting requirements by providing financial data and reports a year in advance along with user friendly directions. They will have a clear picture of what data they will need to collect and how to report it when the time comes."

The Principal is providing 403(b) plan sponsors with:

  • 2008 Life Count Package: helps verify all members are reported on Form 5500 and determines if the plan is large enough to require an independent audit
  • Audit Package[2]: Gives the plan sponsor a snapshot of the data we provide to help them with future audits including financial information necessary for a limited scope audit.
  • Expanded Form 5500 Packet: Helps familiarize plan sponsors with the type of information they will need to verify and what missing data they will need to provide for a complete Form 5500 report

These reports are just part of a comprehensive set of tools from The Principal to help plan sponsors get a head start in meeting several new reporting requirements. Other tools include:

  • A white paper: The Road to Transparency: Form 5500 Annual Reporting, 403(b) Plans and Fair Value Measurements (FAS 157)
  • An easy-to-use Form 5500 Quick Reference Guide
  • An in-depth review of Value and Reporting of Retirement Plan Assets—FAS No. 157
  • A plain language fiduciary handbook: Understanding and Managing Fiduciary Responsibility

About the Principal Financial Group

The Principal Financial Group® (The Principal®)[3] 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 $247.0 billion in assets under management[4] and serves some 19.1 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



Form 5500 reporting does not apply to non-ERISA plans, including governmental and non-electing church plans.
2 For Large Plan Filers generally covering 100 or more participants at the beginning of the plan year.
"The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
As of December 31, 2008

Call 515.246.4907 or see the full Media Relations contact list.

Call 515.246.4907 or see the full Media Relations contact list.

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