By: Susan J. White and Jonah Mainzer, Susan J. White and Associates, Inc.

New Congress Pays Attention to Retirement Concerns
The 110th Congress has stayed extremely busy, with a number of new oversight hearings, including some related to administrative fees for private retirement accounts, and an effort to begin addressing the implementation of the 2006 Pension Protection Act through technical corrections legislation. Key members of Congress, like Senator Gordon Smith, (R-OR) are preparing legislation for reintroduction in the new Congress. Specifically, Smith is finalizing efforts related to his women's pension legislation.

Although, the first few months of the new Congress have been busy, it still remains to be seen how a number of issues in the retirement arena will play out. For example, will technical corrections to the 2006 pension bill be resolved and will the measure remain technical in nature? Will hearings being conducted in the House regarding administrative fees for 401(k) plans continue, develop in the Senate, and will congressional interest ultimately encompass state and local plans? Also, will the Department of Treasury complete action on a number pending regulations affecting governmental defined contribution plans, including wide ranging 403(b) plans?

Executive Board Annual Visit
NAGDCA has conferred on these issues with Congress and with the Department of Treasury. In late February, NAGDCA's Executive Board met in Washington, DC with Capitol Hill and Treasury Department officials. In preparation for these meetings in Washington, NAGDCA's Executive Board finalized NAGDCA's 2007 legislative priorities and priorities letter NAGDCA Executive Board members met with the Senate Committee on Health, Education, Labor and Pensions, the Senate Committee on Finance, the House Committee on Ways and Means, House Committee on Education and Labor, Joint Committee on Taxation, staff for Senator Smith and the Department of the Treasury.

These meetings provided an opportunity for NAGDCA's Board to share the Association's priorities and discuss pending federal actions, including reintroduction of the National Save for Retirement Week Resolution, the possibility of permanently designating such a week, congressional scrutiny regarding 401(k) administrative fees, provisions for public safety workers in the Pension Protection Act (PPA) of 2006, this years technical corrections legislation to the PPA, 415 and 403(b) regulations, and auto enrollment.

Legislative Priorities
The NAGDCA letter outlining the Association's priorities covers a wide range of issues important to NAGDCA members. They include maintaining important distinctions between governmental defined contribution plans, ensuring parity, maintaining the exemption from early withdrawal penalties, maximizing unused flexible account dollars, enactment of a Roth 457 option, permitting non-spousal beneficiaries to roll assets to 457 and 403(b) plans, extending the "National Save for Retirement" resolution, and increasing the population cap for the low income savers tax credit.

Technical Corrections Legislation: Pension Protection Act of 2006 (PPA)
Congress has begun preparations for drafting of a technical corrections bill expected later this spring. At issue, is whether the technical corrections legislation will ultimately accommodate broader policy concerns. Leadership in both chambers and on both sides of the aisle are currently sticking with a purely "technical" bill approach.

House Committee on Education and Labor Hearings
The House Committee on Education and Labor, chaired by Representative George Miller (D-CA) recently held the first in a series of hearings on 401(k) fees it has announced it plans to hold.

The first hearing focused on hidden 401(k) fees and how much disclosure should be required. State and local government defined contribution plans were not discussed as part of this first hearing.

National Save for Retirement Week
With the success of National Save for Retirement Week last fall, NAGDCA is advocating for renewal of the resolution for the coming year. Senator Smith's office has indicated an interest in introducing the Resolution earlier in the year so that state and local governments, plan sponsors and the industry, in general, will have more lead time to plan events nationwide. NAGDCA is working with Senator Smith -and Senator Kent Conrad (D-ND)-last year's co-sponsors- as cosponsors for this year's Resolution. We are also exploring legislative efforts in the House.

Women's Pension Bill
Senator Smith's staff has indicated that he will be reintroducing his Women's Retirement Security Act of 2006 in the near future. As part of the draft legislation, they have worked with NAGDCA to ensure that a Flexible Savings Account (FSA) rollover provision of up to $500 into a defined contribution plan includes governmental plans. The Senator's bill was originally introduced at the end of the 109th Congress, however, given the new Congress all legislation must be reintroduced.

Smith is also beginning work on retirement related legislation for Older Americans and NAGDCA will be working closely with his office to provide input in a number of areas, including phased retirement.