TRADING PLACES: WORK FOR RETIREMENT

National 401(k) Day Reminds Workers To Take Charge Of Their Future

CHICAGO (July 19, 2006) -When American workers trade their jobs for retirement, will they be trading up or down? On September 8, 2006, National 401(k) Day, sponsored by the Profit Sharing/401(k) Council of America (PSCA), will remind workers that saving in their employer-sponsored retirement plan now will make it possible to trade work for the retirement they want and deserve.

"Our theme this year is Trading Places, because there is life after work. Saving now in their employer-sponsored 401(k) can help workers trade work for the retirement life they want," said David Wray, president of PSCA. "Our Web site shows photos transitioning from younger worker to retiree; trading a job for an active retirement lifestyle. We want to empower employees to create the retirement of their dreams by saving now. They can't have too many reminders about the importance of saving for their future."

National 401(k) Day is an annual celebration that encourages employers to set aside time at the workplace to spotlight the importance of their employer-sponsored profit sharing and 401(k) plans. PSCA offers materials to employers at no cost to help them stage a celebration at the worksite.

"Workers understandably aren't always focused on their future. There are many demands in the present. Almost half (47 percent) of employees recently surveyed in The Principal Financial Well Being Index say they have never had a financial planning check-up," said Dan Houston, executive vice president, Principal Financial Group, a sponsor of 401(k) day. "Yet we know that when savers do a retirement calculation they are much more likely to increase savings. National 401(k) Day is a terrific opportunity to break through the noise and provide some focused time on the critical task of saving for retirement."

Free Materials
PSCA offers tools and step-by-step instructions to help plan sponsors with their 401(k) Day preparations and customize the turnkey materials available on the Web site. The materials include free interactive and print 401(k) participant education tools, such as posters, payroll stuffers, interactive online word games, and an entertaining financial quiz that educates employees about 401(k) terms and investing. PSCA member companies also can access four new Web casts tied to the Trading Places theme. Geared toward participants, the Web casts demonstrate the importance of starting to save early, how easy it is to contribute to a 401(k) plan, the tax advantages of saving in a 410(k), and more. In addition, communication materials in Spanish are available for PSCA member companies.

Employers can learn more about 401(k) Day on PSCA's special 401(k) Day Web site, http://www.401kday.org. Visit this Web site for easy, direct access to all of the 401(k) Day materials. "While we've earmarked September 8 as a national day of celebration, it's never too late to celebrate employer-sponsored retirement plans," Wray said. "We encourage plan sponsors to pick a date that works best for their organization."

National 401(k) Day is supported by the nation's leading retirement plan providers and is sponsored in part by: ADP Retirement Services, Charles Schwab, FedEx Kinko's, Fidelity Investments, John Hancock Retirement Plan Services, MassMutual Financial Group, MFS Retirement Plan Services, Inc., Morgan Stanley, Principal Financial Group, and T. Rowe Price Associates, Inc.

401(k) Savings Plan Facts

• According to the Profit Sharing/401(k) Council of America, 65 million Americans participate in company-provided 401(k) or other defined contribution retirement plans
• Participants have approximately $2.8 trillion invested in their plans
• 70 percent of employees participate in 401(k) plans when offered
• The typical employee contributes 6 percent of their pay to their 401(k) plan

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.