AUL Retirement Services to present findings of The New 403(b) Frontier survey at Los Angeles symposium
Contact:
Beth King, APR, Media Relations Manager
(317) 285-4168 or beth.king@oneamerica.com
For Immediate Release:
Indianapolis (Nov. 30, 2009) – When new IRS-mandated regulations for 403(b) plans that took effect earlier this year, it meant plan sponsors were now responsible for making their 403(b) plans operate much the same as their 401(k) counterparts or be subject to government fines. New rules now require that nonprofit plan sponsors offer information on transferring assets and universal availability to all participants. However, despite the new rules, plan sponsors still appear to be lacking in general knowledge of what is expected of them, according to a new study commissioned by AUL Retirement Services entitled The New 403(b) Frontier.
In response to the survey’s findings and to bridge gaps between financial professionals and plan sponsors, AUL Retirement Services will host the first of several 403(b) symposium events at the Marriott Hotel Downtown Los Angeles, 333 S Figueroa St., Thurs., Dec. 10 beginning at 8 a.m. for investment professionals and 1 p.m. for plan sponsors. Other dates and locations are to be announced.
During the symposium, presentations will be given by Fidelity Vice President and Investment Director James R. Jordan on capital markets, AUL Vice President of Equities Kathryn Hudspeth on investor behaviors in turbulent times, AUL Associate General Counsel Jim Long on fiduciary responsibilities and AUL Vice President of National Nonprofit Sales Kevin Kidwell who will present survey findings.
“After reaching out to more than 3,700 nonprofit plan sponsors, we learned that they are concerned with addressing their fiduciary responsibilities,” said Bill Yoerger, senior vice president for AUL Retirement Services. “These findings present a tremendous opportunity for the retirement services industry as a whole, and AUL Retirement Services is excited to be at the forefront of research.”
In late 2008, AUL Retirement Services, along with Indianapolis, Ind.- based Jackson Group, conducted a first-of-its -kind survey where 700 nonprofit plan sponsors from the micro and small market segments in Calif., Col., Fla., Ill., Mass., Tenn. and Washington were asked broad-based questions about their understanding of fiduciary responsibilities, 403(b) regulations and the Pension Protection Act. Contrary to historical research, the respondents expressed confidence in their understanding of these issues. However, after being asked more detailed questions, a much lower percentage of respondents expressed the same level of understanding, leading to the conclusion that plan sponsors are behind in becoming compliant with new 403(b) regulations.
The New 403(b) Frontier builds upon previously released programs for advisors wishing to break into the 403(b) market, including: AUL Retirement Services’s exclusive 403(b) initiative with Goldleaf Partners to help advisors grow their business and AUL Investment Advisor Services, the company’s exclusive business-building service that expands distribution channels to work with Registered Investment Advisors (RIAs) and Investment Advisor Representatives (IARs) by offering Web-based investment modeling tools. Additionally, AUL Retirement Services has planned a host of external events to further leverage the research, including webinars, additional symposia and national observances.
“This research has truly opened our eyes and we intend to stand behind the findings, “Yoerger continued. “Now, more than ever, it’s critical for plan sponsors to understand their responsibilities, so that they are poised to offer their employees the best retirement savings options possible.”
The target population for The New 403(b) Frontier consisted of 3,782 organizations that exist within the following 403(b) market segments: churches, public schools, health care and other organizations. Other organizations include private schools, charitable organizations and colleges. Respondents in each market segment incorporated key decision makers, including: benefits managers, human resources managers, pastoral ministers and payroll administrators. Additionally, plan sponsors were assessed in the areas employer contribution and plan participation rates, the use of or continued use of multiple vendors, fiduciary responsibilities, concern about IRS audits, the Pension Protection Act and self administration verses third party administration. Following the research report’s findings, advisors are given a survey questionnaire to share with their nonprofit clients.
About AUL Retirement Services
American United Life Insurance Company® (AUL) is the founding member of OneAmerica® and offers a wide range of products and services for retirement plans of individuals and employers. As a leader in the retirement services industry, AUL provides local service through a national network of experienced professionals focusing on the 401(k), 403(b) and 457 markets.
About AUL
American United Life Insurance Company® (AUL), a OneAmerica® company, is focused on providing a strong portfolio of products for individuals, families and small businesses. AUL uses a national network of experienced professionals utilizing an extensive menu of financial products, including life insurance, annuities and employee benefit plan products. The company helps consumers plan for tomorrow by helping to protect their financial futures.
About OneAmerica
OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica® can trace their solid foundations back more than 130 years in the insurance and financial services marketplace.
OneAmerica’s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other clients. These products include retirement plan products and services; individual life insurance, annuities, long-term care solutions and employee benefits. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results.
The products of the OneAmerica companies are distributed through a network of employees, agents, brokers and other distribution sources that are committed to increasing value to our policyholders by helping them plan to meet their financial goals.
Note to media: For more information on the 403(b) symposium or to RSVP, please contact Marketing Communications Consultant Vicky Barnett at (317) 285-1601 or vicky.barnett@oneamerica.com. To obtain a PDF copy of The New 403(b) Frontier, please contact Media Relations Manager Beth King, APR at 317-285-4168 or beth.king@oneamerica.com.
Tax qualified retirement plans from American United Life Insurance Company (AUL) are funded by an AUL group annuity contract. While a participant in an annuity contract may benefit from additional investment and annuity related benefits under the annuity contract, any tax deferral is provided by the plan and not the annuity contract.
Registered group variable annuity contracts issued by AUL are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, P.O. Box 1984, Indianapolis, IN 46206, (877) 285-3863, which is a wholly owned subsidiary of AUL.
Variable products are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained from your investment professional or by writing to 433 N. Capital Ave., Indianapolis, IN 46204, 1-877-285-3863. Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectus contain this and other important information. Read the prospectuses carefully before investing.
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