PSCA Made Things Happen in 2006!

Defined contribution system will be dramatically changed due to hard work/support of PSCA’s members

The year of 2006 was a stand-out year for the defined contribution system, and the Profit Sharing/401k Council of America played a significant role in the continuing evolution of 401(k) and profit sharing plans. PSCA continued to deliver positive results to our members, most significantly by celebrating the passing of the Pension Protection Act of 2006 in August. Additionally, PSCA maintained a substantial presence in the media, providing a balanced perspective of 401(k) and profit sharing plans.

Government Affairs
While many people and organizations contributed to the success of making the 2001 pension provisions in the Economic Growth and Tax Relief and Reconciliation Act (EGTRRA) permanent in the Pension Protection Act of 2006, PSCA was the driving force. If not renewed, these provisions would expire at the end of 2010. This expiration date was preventing many companies from offering significant retirement savings benefits, such as the Roth 401(k) feature. The looming expirations also was expected to chill new plan creation as the deadline drew near. Beginning in March 2005, PSCA organized a series of letters signed by plan sponsors, service providers and many associations urging Congress to make the retirement provisions in EGTRRA permanent. PSCA’s website-based Capitol Connection was energized to enable our members to send e-mails to representatives urging them to support making the pension provisions of EGTRRA permanent. 

Our efforts bore fruit in late 2005 when the House Ways and Means Committee included EGTRRA permanency in their pension reform proposal. Finally, August 3, 2006 saw huge success! By a vote of 93 to 5, the Senate sent to the President legislation:

• Making permanent the retirement provisions of the 2001 Tax Act;
• Reauthorizing and indexing the Saver’s Credit; and,
• Removing the barriers to automatic enrollment.

The passage of these provisions, which were signed into law as the Pension Protection Act of 2006 by President Bush on August 17, 2006, brought to closure an effort started at PSCA in 1992 to overhaul defined contribution plan regulation so that the benefits of these employer-sponsored programs could be provided robustly to every American worker. Today’s employees stand to enjoy the best retirement experience of any generation in history. 

However, PSCA is still hard at work on this issue. Although the PPA provides many new benefits and opportunities for millions of Americans to save for retirement, the final bill did not include language that clarifies that tribal governments will be treated equally with other governments under benefits law. PSCA is working closely with the National Congress of American Indians to quickly revoke this provision in an expected technical corrections bill. 

As we move into 2007, PSCA also will keep an eye on Congressional hearings regarding plan fees. These hearings are partially in response to a series of lawsuits filed in 2006. PSCA is busy developing a list of answers and solutions for plan sponsors to use in response to plan participants regarding their plans fees. This list will be available to our members as soon as it is complete. 

PSCA is committed to representing the needs of plan sponsors in Washington. We will continue to create an environment that is conducive to employer-sponsored defined contribution plans and the benefits that they provide millions of Americans.

Member Services
Toll-free Helpline
PSCA members saved time and money by contacting PSCA with their most pressing benefit plan questions. In 2006, more than 1,000 requests were called into our toll-free hotline. Members who called in or sent an e-mail received accurate feedback based on the latest industry trends and data.

Benchmarking
PSCA published a successful annual survey. PSCA’s 49th Annual Survey of Profit Sharing and 401(k) Plans reflects the plan year experience of 1,106 profit sharing and 401(k) plans with more than 6 million participants and more than $500 billion in plan assets. The 2006 survey also contains 112 tables of benchmarking data addressing important topics such as: company contributions, investments options and asset allocation, loans, education and advice, company stock, automatic enrollment, and much more!

PSCA also responded to our members’ interests and needs by conducting several mini-surveys based on topics of interest. These small, snapshot surveys cover topics from enrollment eligibility to Roth 401(k).

PSCA Executive Report
PSCA kept its members up-to-date on the latest events in Washington through our monthly e-newsletter, the Executive Report. PSCA remains committed to providing our members with legal and legislative news affecting profit sharing and 401(k) plans.

Bimonthly Magazine
PSCA’s bimonthly magazine, Defined Contribution Insights, is a significant member benefit. Articles in this publication, which are written by PSCA members, offer expert advice about various aspects of profit sharing and 401(k) plans. Topics range from the latest survey data to fiduciary updates, investment information, plan administration trends, and much more. Articles in Defined Contribution Insights are supported by illustrations, graphics, charts, and data tables to help emphasize important themes and information. PSCA members use this important publication to stay on top of industry trends and to discover what companies like theirs are doing to successfully provide important profit sharing and 401(k) benefits to their employees.

401(k) Day
401(k) Day is a nationally-recognized day that celebrates and raises awareness about the benefits of 401(k) programs. The 2006 401(k) Day campaign was a huge success! The theme was “Trading Places,” and the campaign portrayed images of people before and after retirement. PSCA supported 401(k) Day by supplying its members with ready-made educational materials for plan participants. In 2006, 18,267 plan sponsors visited www.401kday.org, downloaded these materials, and used these ideas in their own communications campaigns. The easy-to-use and educational materials included payroll stuffers, brochures, posters, and interactive games in English and Spanish versions.

Web Sites
PSCA maintains several Web sites, which are: www.psca.org, www.401k.org, and www.401kday.org. These Web sites provide useful information about PSCA as well as information about profit sharing and 401(k) plans. These Web sites also contain special members-only sections where PSCA members can find even more data about defined contribution plans. In 2006 PSCA also created the Web site, www.egtrrapermanence.org, which educated members about the necessity of making the EGTRRA pension provisions permanent. The site was deactivated once the Pension Protection Act of 2006 was passed. The number of users who visit PSCA Web sites continues to increase. In 2006, www.psca.org received 367,006 hits; www.401k.org received 121,027 hits; and www.401kday.org received 18, 267 hits.

Conferences
PSCA celebrated another year of outstanding conferences. PSCA hosted three successful conferences: The Midwest Regional Conference, the Public Policy Fly-in, and the 59th annual National Conference at the Ritz-Carlton in Amelia Island, Florida. Leading defined contribution experts shared their knowledge with conference attendees on topics including benchmarking, fiduciary responsibility, legislative updates, and the latest changes in the benefits industry. All PSCA conferences were highly-attended, and we received extremely positive feedback. Both the 2006 Midwest Regional and National Conferences received a superior rating of 4.8 out of 5.0! PSCA is committed to making our conferences the premier benefits events of the year!

Volunteer Leadership
PSCA succeeds in large part to the immense support we receive from our volunteers. PSCA members donate their time to the Board of Directors and Education and Communication, Legal and Legislative, Provider Advisory, Research, and National Conference Planning Committees. Additionally, PSCA members speak at the regional and national conferences, participate in PSCA Signa ture Awards judging and 401(k) Day, and contribute to PSCA publications. PSCA would like to thank its many volunteers. It is because of their support that PSCA is able to continue to provide quality services and benefits to its members.

Signature Awards
2006 was a highly-successful year for the PSCA Signature Awards. The PSCA Signature Awards honor companies that demonstrate outstanding education and communication techniques about profit sharing and 401(k) programs to their plan participants. With 263 entries, the competition was stiff. The winners of this year’s competition were announced at a special ceremony on Sept. 13 at the 59th annual National Conference in Amelia Island, Florida. This year, Komatsu America Corpora tion won the prestigious Best of Show award. Komatsu, and the other winning companies, were highlighted in the annual Signature Awards Magazine. 

Also contributing to the success of the 2006 Signature Awards were the dedicated PSCA members who donated their time to review and judge the numerous entries. Many of the judges also contributed to Signature Awards by writing dynamic summaries about the winning companies so other companies could read about their success in the Signature Awards Magazine. This magazine, which was filled with best practices ideas, was distributed to attendees at the National Conference and to PSCA members.

Public Education and Media
PSCA remains committed to representing accurate and unbiased information about the defined contribution industry in the media. In 2006, PSCA staff members did an average of three media interviews a day in addition to responding to media inquiries. PSCA was also a resource for thousands of other articles on topics related to profit sharing and 401(k) plans. Some of the influential media outlets PSCA contributed to were: The Wall Street Journal, New York Times, USA Today, L.A. Times, Chicago Tribune, NBC, CNBC, MSNBC and CNN. Media appearances by PSCA are important because they ensure that participant appreciation is not undermined by negative articles, which generate needless participant inquiries to your call centers. 

In 2006, PSCA also published an Issue Brief titled “The 401(k) Advan tage.” This publication gave a detailed account about why employer-provided plans are the best way for Americans to save money for retirement. PSCA Issue Briefs are another way for PSCA to educate our members and the public about the significant benefits and advantages of the defined contribution industry.

Administration
PSCA managed its resources in a financially responsible manner in 2006. PSCA’s total income in 2006 was $2,162,454. PSCA’s total expenses in 2006 were $2,005,581. Surplus assets from 2006 will help fund in 2007 new and improved benefits for PSCA members, our efforts in Washington, DC, and new programs increasing membership.

Conclusion
As PSCA moves forward, we remain committed to our role as a leader of the defined contribution industry. Our expanding membership base, dedicated volunteers, and expert and committed staff will provide our members with important benefits such as regulatory updates and benchmarking data. PSCA is committed to continuing its success in 2007 and promoting an environment conducive to supporting employer-provided defined contribution plans.
Kara Schappa is Editor for PSCA.