PSCA TO CONDUCT BENCHMARKING STUDY TO IDENTIFY 403(b) PLAN BEST PRACTICES

PSCA to Survey Non-Profit Marketplace

CHICAGO -- BUSINESS WIRE (October 9, 2007) - Millions of people are saving for their futures in 403(b) retirement plans sponsored by non-profit organizations and public schools, colleges and universities. Those organizations are facing increased administrative responsibilities due to regulatory changes approved by the Treasury Department in July but there is little comprehensive information to help them evaluate their plans in light of the new requirements. To bring those organizations the essential information they need, the Profit Sharing/401(k) Council of America (PSCA) is pleased to announce the First Annual Non-Profit Benchmarking Study. All 403(b) plan sponsors are encouraged to participate in the study.

The benchmarking study will:

• Demonstrate the importance of the non-profit retirement plan market
• Provide a comparison tool to measure how one non-profit plan stacks up against other non-profits and evaluate opportunities to improve plan design
• Provide fact-based information to help non-profit plan sponsors with employee education

“When we discuss retirement savings, the focus in generally on 401(k) plans and for-profit companies, but the millions of Americans who work for non-profit organizations need the same support from their employers to save for retirement,” said David Wray, president of PSCA. “In the non-profit market, a strong benefits package including a retirement plan is key in attracting and retaining employees.”

“This is the first broad-based study of its kind in the non-profit marketplace, and it will fill a critical gap in industry benchmarking,” said Paul Fromm, second vice-president, Retirement and Investor Services, The Principal®. “Non-profit plan sponsors will better understand how their retirement plans compare to those of similar organizations and will get a feel for best practices related to plan design. This will prove extremely valuable as they initiate a strategic review of their plan in light of the new regulations. Financial professionals will gain information to help plan sponsors identify needed changes.”

According to the 2004 U.S. Census Bureau survey, non-profit organizations employed 9.4 million paid employees, accounting for 10.5 percent of the total American work force. These employees outnumber those working for utilities, wholesale trade and construction industries.

“Our 403(b) plan is an integral part of our overall package to attract and retain top employees,” said Manik K. Rath, vice president, general counsel and corporate secretary,
LMI—a non-profit government consulting firm based in McLean, Va. “We look forward to the survey results so we can be sure our plan will continue to be top-of-the-line and help us continue to compete for the best talent.”

The new 403(b) regulations, meant to bring some 403(b) plan rules in line with requirements for 401(k) and public 457(b) plans, increase administrative responsibilities for many 403(b) plan sponsors.

“I encourage non-profit organizations to take the time to participate in this new study,” said Angela (Angie) M. Kolar, PSCA Non-profit Research Advisory Board and Human Resources representative for the National Marrow Donor Program. “The more of us who participate, the more complete the benchmarking results will be.”

Results of the First Annual Non-Profit Benchmarking Study will be available in early 2008. PSCA will provide a complimentary copy of the results to participating plan sponsors.

The study was developed with consultation from members of the PSCA Non-profit Research Advisory Board. Board members include: Angela (Angie) M. Kolar, National Marrow Donor Program; William (Bill) Gould, Winona Health (Hospital); John Lewison, MDRC; Silvia Frank, TrinityHealth; Anne Reed, Clarian Health Benefits; Laura White, Diversified Investment Advisors; Sandy Fotiades, Fidelity Employer Services Company; David Wray, PSCA; Patty Alman, PSCA; Aaron Friedman, Principal Financial Group and Paul Fromm, Principal Financial Group.

The Profit Sharing/401(k) Council of America (PSCA), a national non-profit association of 1,200 companies and their 6 million employees, advocates increased retirement security through profit sharing, 401(k) and related defined contribution programs to federal policymakers and makes practical assistance with profit sharing and 401(k) plan design, administration, investment, compliance and communication available to its members. PSCA, established in 1947, is based on the principle that “defined contribution partnership in the workplace fits today’s reality.” PSCA's services are tailored to meet the needs of both large and small companies with members ranging in size from Fortune 100 firms to small, entrepreneurial businesses.

***About the Principal Financial Group***

The Principal Financial Group(The Principal ®) 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 $282.1 billion in assets under management and serves some 18.1 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 www.principal.com.