Spring 2010

Dear NAGDCA Friends,
 
Spring is arriving and bringing new life and vitality with it. So it is with NAGDCA too. Many activities and initiatives are in full swing thanks to the efforts of many NAGDCA members.

The Legislative Committee has developed the 2010 NAGDCA Legislative Program to highlight issues that are important to our membership. Those issues include:

  • Enactment of a Roth 457 option. 401(k), 403(b), and the Federal Thrift Saving Program all are permitted to offer a Roth options within their plans that allow participants to save for retirement with both pre- and post-tax contributions. Extending this savings option to 457 plans will provide this important benefit to public employees. The Senate passed legislation that includes a Roth 457 provision on March 10. We are continuing our efforts to win passage in the House.
  • Passage of a 2010 National Save for Retirement Week Resolution.
  • Maintaining the exemption from the 10 percent early withdrawal penalty.
  • Allowing non-spousal beneficiaries to roll assets to 457, 401(k) and 403(b) Plans.  The Pension Protection Act permitted non spousal beneficiaries to roll assets obtained as a beneficiary to an IRA, and EGTRRA acknowledged that the consolidation of retirement assets is valuable to those with multiple retirement savings accounts.  It would be similarly valuable to non spousal beneficiaries to consolidate their beneficiary assets to their 457(b), 401(k) or 403(b) accounts.
  • Increase eligibility for the low income savers tax credit, to allow more lower-income individuals the opportunity to save.
The NAGDCA Executive Board traveled to Washington, DC in mid-March to present its Legislative Program to senior congressional staff members and representatives of the Department of Treasury. In addition, we were delighted to meet with Representative Allyson Schwartz (D-PA) who is the prime sponsor of the National Save for Retirement Week resolution in the House and Representative Sam Johnson (R-TX) who is a co-sponsor of the resolution.  

We also offered NAGDCA’s continued assistance on the issue of fee disclosure. State and local governments, by virtue of their open bid processes, public meeting and public record requirements, have well-established open and transparent fee disclosure practices. We look forward to continuing to work with Congress on this issue.

Finally, the Executive Board also met with Beth Almeida, Executive Director of the National Institute of Retirement Security (NIRS). NIRS conducts research on public employee retirement issues and currently focuses on defined benefit plans. There is a natural relationship between NIRS and NAGDCA in that retirement security needs both a pension and savings. We hope to build a collaborative relationship with NIRS on mutually compatible issues.    

Thank you to those who completed the 2010 NAGDCA survey. The results of this survey are presented in our discussions during our Washington meetings and demonstrate our ability to provide data that is representative of public sector defined contribution plans. 

The Membership Committee recommended and the Executive Board approved a new Member Initiative. NAGDCA members who successfully recruit a new member will be entitled to a $50 reduction in their annual dues or conference registration for each new member. When you recruit a new member, make sure they identify you on their membership application form to assure that you qualify for the incentive benefit.

The very important and much anticipated Legislative Webcast will be held on April 22 at 3 PM EDT and will feature Susan White, NAGDCA’s Legislative Representative, and Kevin O’Conner, Assistant to the General President Government Affairs & Public Policy at the International Association of Fire Fighters. Alex Turner will be the moderator.  
 
NAGDCA Collegiate Education Program is in its second year. Presentations will be made at Kansas State University on April 8 by Rick Rodgers and Eastern Illinois University on April 12 by Mary Willett and Rick Boersma. In addition, a web based version of the presentation is being produced and will be available by the end of April. Jack Schafroth, OR, is doing the presentation voice over. This program introduces college students to the world of defined contribution plans in the public sector.  
 
Plans for the 2010 Conference entitled Retirement: Life, Liberty and the Pursuit of Happiness are coming right along. The Conference Committee has selected the general and breakout session topics and the speaker solicitation will be released soon. Please review the topics and volunteer to speak on those issues in which you are interested and feel most qualified. The 2010 Conference will have a great deal to offer and Philadelphia is a great town. Make 2010 your best Conference experience ever.

As members of NAGDCA, I encourage you to network with your fellow administrators and experience the variety of educational programs and opportunities NAGDCA has to offer. NAGDCA strives to keep its members up to date of the latest issues surrounding the defined contribution community and it is our goal to act as an educational resource for individuals throughout the industry. For more information on any of NAGDCA’s upcoming events or deadlines, please visit www.nagdca.org or contact NAGDCA at 859-514-9161.