PSCA URGES SEC TO PRESERVE LEVEL PLAYING FIELD FOR ALL INVESTORS

WASHINGTON (January 23, 2004) - The Profit Sharing / 401k Council of America, in formal comments to the proposed “hard close” rule designed to address the recent late trading scandals, urged the Securities and Exchange Commission to produce a final rule that does not relegate 401(k) and other employer provided plan participants to second class status. The proposed rule would reduce the ability of ninety percent of mutual fund investors to make fund trades up to the fund’s closing time. Only investors dealing directly with a mutual fund would not be affected.

"While the overwhelming majority of plan participants, like all investors, understand the value of long term investing and very rarely transfer their funds, the ability to enjoy same day pricing when conducting transactions is highly valued and important when making investment decisions. This is especially true for large transactions taken in anticipation of retirement," said PSCA President David L. Wray. "We strongly disagree with the SEC’s assertions that retirement plan participants do not value the ability to make investment decisions based on same day pricing."

PSCA's comments urge the SEC to apply uniform rules to all entities that process fund trade orders, be they mutual funds, broker-dealers, transfer agents, or other intermediaries. In exchange for equal treatment, PSCA recognizes that the SEC must be permitted to exercise regulatory authority over these entities.

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.