PSCA APPLAUDS CHAIRMEN OXLEY AND BAKER FOR ENSURING FAIR TREATMENT OF 401(k) PLAN PARTICIPANTS

CHICAGO (November 20, 2003)  - The Profit Sharing / 401k Council of America (PSCA) extends its gratitude to House Financial Services Committee Chairman Michael G. Oxley and Chairman Richard Baker of the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises for inclusion of a key provision in HR 2420, the Mutual Funds Integrity and Fee Transparency Act of 2003, that passed the House of Representatives 418-2 yesterday.

The legislation directs the Securities and Exchange Commission to issue rules to prevent late trading in mutual funds without disadvantaging 401(k) and other employer-provided retirement plan participants. Plan intermediaries who satisfy stringent design and audit standards will be permitted to continue to forward trades initiated by participants before a mutual fund’s closing time to the fund after closing time. Without this provision employer provided plan participants would likely lose the ability to engage in same day trading and would be relegated to second-class status relative to other investors.

"We hope that the SEC will follow the lead of Chairmen Oxley and Baker," said PSCA President David L. Wray. "The mutual fund system, in partnership with employers who sponsor retirement plans for workers, has opened the door to capital ownership for average Americans. A few bad actors have victimized these investors. It’s important that needed reforms don’t unintentionally institutionalize this mistreatment."

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.